Loading Content...
Zip Code 21502: Cumberland's Rising Home Values and Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 21502, located in Cumberland, Maryland, has experienced significant shifts in homeownership rates and housing prices over the past decade. This area, covering 95.59 square miles, has seen a fluctuating population with an overall downward trend, reaching 41,027 residents in 2022. The ownership percentage has shown resilience, while average home prices have steadily increased, and average rent prices have experienced moderate growth.
The homeownership rate in zip code 21502 has demonstrated a notable trend, initially decreasing from 70% in 2013 to 65% in 2019, before rebounding to 69% in 2022. This recovery in homeownership coincides with a substantial increase in average home prices, which rose from $90,219 in 2010 to $138,177 in 2022, representing a 53.2% increase over 12 years. The relationship between ownership rates and home prices suggests that despite rising costs, local residents have maintained a strong inclination towards homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.1% to 0.4%, which likely contributed to the relatively stable homeownership rates during this time. As interest rates began to rise in 2017, reaching 1.83% in 2018, there was a slight dip in homeownership to 66%. However, the subsequent drop in interest rates to 0.08% in 2021 coincided with an increase in homeownership to 68%, demonstrating the inverse relationship between interest rates and homeownership.
Renter percentages in zip code 21502 have shown an inverse relationship to homeownership rates, peaking at 35% in 2019 before decreasing to 31% in 2022. Average rent prices have generally increased over time, rising from $685 in 2013 to $766 in 2022, a 11.8% increase. This moderate growth in rent prices, compared to the more substantial increase in home prices, may have contributed to the recent shift back towards homeownership. The population decline from 43,769 in 2010 to 41,027 in 2022 might have also influenced the rental market, potentially easing demand and helping to moderate rent increases.
In 2023 and 2024, the housing market in zip code 21502 continued to show strength. The average home price reached $142,070 in 2023 and further increased to $143,344 in 2024, representing a 3.7% growth over two years. This growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, levels not seen since 2007. These higher interest rates have not yet appeared to dampen the local housing market's momentum.
Looking ahead, predictive models suggest that average home prices in zip code 21502 may continue to rise over the next five years, potentially reaching around $160,000 by 2029. This projection is based on the consistent upward trend observed since 2010. Average rent prices are also expected to increase, albeit at a more moderate pace, potentially reaching approximately $850 per month by 2029. These predictions assume a continuation of current economic conditions and local market dynamics.
In summary, zip code 21502 has demonstrated resilience in homeownership rates despite fluctuations in population and significant increases in average home prices. The area has seen a recent trend of increasing homeownership, possibly driven by the long-term affordability of homes compared to rising rent prices. The housing market has shown robustness in the face of rising interest rates, with continued growth in home values. As the area moves forward, it appears poised for further appreciation in both home values and rent prices, maintaining its appeal for both homeowners and investors.
