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Zip Code 21225: Rising Home Values and Shifting Ownership Patterns in Brooklyn Park, Maryland
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 21225, located in Brooklyn Park, Maryland, has experienced notable shifts in homeownership and housing market dynamics over the past decade. This area has seen a gradual increase in homeownership rates alongside fluctuating average home prices and rent costs, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 21225 has shown a steady upward trend, rising from 49% in 2014 to 54% in 2022. This increase in homeownership coincided with a significant rise in average home prices. In 2014, the average home price was $115,579, which grew to $197,959 by 2022, representing a substantial 71.3% increase over eight years. This trend suggests a strong correlation between rising home values and increasing homeownership rates in the area.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2014 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the increase in homeownership, as they made mortgage financing more accessible and affordable for potential buyers. The rise in homeownership from 49% in 2014 to 54% in 2020 aligns with this period of low interest rates.
Conversely, the renter population in zip code 21225 has seen a gradual decline, decreasing from 51% in 2014 to 46% in 2022. This decline in renters corresponds with an overall increase in average rent prices. In 2014, the average rent was $1,053, which increased to $1,041 by 2022. While this represents a slight decrease over the eight-year period, it's important to note that rent prices peaked at $1,156 in 2021 before declining. The population fluctuations, from 32,095 in 2014 to 33,273 in 2022, may have influenced these rental market dynamics.
As of 2024, the average home price in zip code 21225 has reached $210,055, continuing the upward trend observed in previous years. This represents a 4.3% increase from the 2023 average of $201,328. Interestingly, federal interest rates have also risen significantly, reaching 5.33% in 2024, up from 5.02% in 2023. This increase in interest rates could potentially impact future homeownership rates and housing market dynamics in the area.
Looking ahead, predictive models suggest that average home prices in zip code 21225 may continue to rise over the next five years, potentially reaching around $240,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. Average rent prices are also expected to increase, potentially reaching approximately $1,200 per month by 2029, reflecting ongoing demand for rental properties in the area.
In summary, zip code 21225 has demonstrated a clear trend towards increased homeownership, rising from 49% to 54% between 2014 and 2022, despite significant growth in average home prices. This trend has occurred alongside fluctuating but generally increasing rent prices. The interplay between federal interest rates, housing prices, and rental costs has shaped the local real estate market, with recent increases in both home values and interest rates potentially influencing future market dynamics.
