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Zip Code 21620: Rising Home Values and Stable Ownership in Fairlee, 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 21620, located in Fairlee, Maryland, has experienced notable shifts in its housing market over the past decade. This area, covering 129.83 square miles, has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 21620 has shown moderate stability with some fluctuations. In 2013, the homeownership rate stood at 67%, and by 2022, it had increased slightly to 70%. During this period, average home prices in the area saw significant growth. In 2013, the average home price was $214,588, and by 2022, it had risen to $334,951, representing a substantial increase of 56% over nine years. This upward trend in home prices coincided with a generally stable homeownership rate, suggesting that despite rising costs, residents in this area maintained a strong preference for owning homes.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 21620. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable, hovering around 67-69%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 65% in 2018. However, the area saw a rebound in homeownership to 70% by 2022, despite interest rates climbing to 1.68%, indicating a resilient local housing market.
Renter occupancy in zip code 21620 has shown inverse trends to homeownership. In 2013, the renter percentage was 32%, and it fluctuated slightly over the years, reaching 35% in 2018 before settling at 30% in 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $998, and it decreased to $910 in 2016 before rising again. By 2022, the average rent had increased to $1,076, representing a 7.8% increase from 2013. This trend suggests that while rent prices have risen, they have not increased as dramatically as home prices in the same period.
In 2023 and 2024, the housing market in zip code 21620 continued its upward trajectory. The average home price in 2023 was $344,106, further increasing to $359,166 in 2024. This represents a 7.2% increase in just two years, indicating a robust housing market. Notably, these price increases occurred despite significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, predictive models suggest that both average home prices and rent prices in zip code 21620 are likely to continue their upward trend over the next five years. Home prices could potentially reach or exceed $400,000 by 2029, while average rent prices might surpass $1,200 per month. However, these projections depend on various factors, including economic conditions, local development, and broader housing market trends.
In summary, zip code 21620 has demonstrated a resilient housing market with a strong preference for homeownership despite rising home prices. The area has maintained a relatively stable balance between owners and renters, with recent years showing a slight increase in homeownership. The consistent rise in both home values and rent prices, even in the face of fluctuating interest rates, suggests a robust demand for housing in this Maryland community.
