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Zip Code 21536: Rising Home Values and Ownership Rates in Grantsville, 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 21536, located in Grantsville, Maryland, has experienced notable shifts in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 21536 has shown a general upward trend from 2013 to 2022. In 2013, the homeownership rate was 73%, which increased to 77% by 2022. This increase coincided with a significant rise in average home prices. In 2013, the average home price was $135,883, which steadily increased to $226,480 by 2022, representing a 66.7% increase over this period. The most substantial year-over-year increase occurred between 2020 and 2021, with average home prices jumping from $172,007 to $203,064, a 18.1% rise in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 21536. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. This low-interest environment likely contributed to the increased homeownership rates observed during this time. As interest rates remained low, more residents were able to afford mortgages, driving up both homeownership rates and average home prices.
The renter percentage in zip code 21536 has correspondingly decreased from 27% in 2013 to 23% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $697, which peaked at $709 in 2017 before declining to $578 in 2022. This represents a 17.1% decrease in average rent from 2013 to 2022, despite the overall increase in home prices. The population of the zip code has also decreased from 4,385 in 2013 to 4,117 in 2022, which may have contributed to the downward pressure on rent prices.
Looking at the most recent data, the average home price in zip code 21536 continued to rise in 2023, reaching $228,567. This represents a modest 0.9% increase from 2022. In 2024, the average home price further increased to $231,279, a 1.2% rise from 2023. Notably, federal interest rates have significantly increased, reaching 5.02% in 2023 and 5.33% in 2024. This sharp rise in interest rates could potentially impact future homeownership rates and home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 21536 will continue to rise, albeit at a slower pace due to the higher interest rate environment. We project average home prices could reach approximately $250,000 by 2029. Average rent prices, which have been volatile, are expected to stabilize and potentially increase slightly, possibly reaching around $650 by 2029, as the rental market adjusts to changing homeownership dynamics and population trends.
In summary, zip code 21536 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 its housing market, with consistent growth in home values despite population decreases. The recent sharp rise in interest rates may slow down the pace of home price appreciation and potentially impact homeownership rates in the coming years. However, the strong trend towards homeownership and the steady increase in property values suggest a stable and potentially growing housing market in this zip code for the foreseeable future.
