Loading Content...
Zip Code 21632: Rising Home Values and Shifting Ownership in Federalsburg, Maryland
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 21632, located in Federalsburg, Maryland, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, spanning 77.57 square miles, has seen fluctuations in its population and housing market dynamics. The homeownership rate in zip code 21632 has shown a slight overall decline from 2013 to 2022. In 2013, 66% of housing units were owner-occupied, while by 2022, this figure had decreased to 62%. During this same period, average home prices in the area demonstrated a significant upward trend. In 2013, the average home price was $122,204, which steadily increased to $206,278 by 2022, representing a substantial 68.8% growth over nine years.
Federal interest rates appear to have influenced homeownership rates in this zip code. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable, hovering around 63-66%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, there was a corresponding slight decline in homeownership rates to 62%.
The rental market in zip code 21632 has shown interesting trends as well. The percentage of renter-occupied housing units increased from 34% in 2013 to 38% in 2022. However, average rent prices have not followed a consistent upward trend like home prices. In 2013, the average rent was $1,084, which decreased to $915 by 2022, representing a 15.6% decline. This trend suggests that despite the increase in the renter population, other factors such as local economic conditions or housing supply may have influenced rent prices.
Looking at more recent data, the average home price in zip code 21632 continued its upward trajectory, reaching $214,073 in 2023 and further increasing to $224,321 in 2024. This represents a 3.8% year-over-year increase from 2022 to 2023, and a 4.8% increase from 2023 to 2024. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 21632 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $265,000 to $280,000, assuming a moderate annual growth rate of 3-5%. For rent prices, given their recent volatility, a more conservative estimate suggests they may stabilize and gradually increase to around $1,100 to $1,200 per month by 2029, accounting for potential economic growth and housing demand in the area.
In summary, zip code 21632 has experienced a gradual shift towards more renter-occupied housing units, while simultaneously seeing a substantial increase in average home prices. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with recent sharp increases in interest rates potentially impacting future market dynamics. The rental market has shown more variability, with increasing renter populations but decreasing average rents, suggesting complex local factors at play.
