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Zip Code 21531: Rising Home Values and Ownership Trends in Rural Friendsville, 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 21531, located in Friendsville, Maryland, has witnessed significant shifts in homeownership rates and housing prices over the past decade. This rural area, spanning 67.49 square miles, has experienced fluctuations in its population and housing market dynamics.
The ownership percentage in zip code 21531 has shown a generally increasing trend from 2013 to 2022, rising from 76% to 82%. This upward trajectory in homeownership has coincided with notable changes in average home prices. In 2013, the average home price was $128,314, which steadily increased to $220,799 by 2022, representing a substantial 72% growth over this period. The most significant annual increase occurred between 2020 and 2021, with average home prices jumping from $164,527 to $197,707, a 20% rise in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 21531. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 73% to 77%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates continued to climb, reaching 81% by 2019. This suggests that other local factors, such as employment opportunities or demographic shifts, may have outweighed the impact of rising interest rates on homeownership in this area.
Renter percentages in zip code 21531 have shown an inverse relationship to homeownership rates, decreasing from 24% in 2013 to 18% in 2022. Interestingly, average rent prices have not followed a consistent pattern during this period. In 2013, the average rent was $796, which peaked at $888 in 2014 before declining to $601 in 2022. This represents a 24% decrease in average rent prices over the decade, despite the overall increase in home values. The population of the area has fluctuated, with a notable decrease from 2,622 in 2015 to 2,417 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, the average home price in zip code 21531 slightly decreased from $220,799 in 2022 to $220,383 in 2023, before marginally increasing to $221,132 in 2024. This suggests a stabilization in the housing market after years of growth. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate a moderate growth in average home prices, potentially reaching around $240,000 by 2029. This projection is based on the historical growth rate and recent market stabilization. For average rent prices, we expect a slight upward trend, possibly reaching $650-$700 by 2029, assuming economic conditions remain stable and population trends continue their current trajectory.
In summary, zip code 21531 has experienced a notable increase in homeownership rates and average home prices over the past decade, while average rent prices have decreased. The area has shown resilience in maintaining high homeownership rates despite fluctuations in interest rates and population. The recent stabilization of home prices and the significant increase in interest rates may signal a new phase in the local housing market, potentially affecting future homeownership trends and housing affordability in this rural Maryland community.
