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Zip Code 21742: Rising Home Values and Ownership Rates in Fountainhead-Orchard Hills, 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 21742, encompassing the Fountainhead-Orchard Hills in Maryland, has experienced notable shifts in homeownership and housing prices over the past decade. This area has seen a gradual increase in homeownership rates, coupled with significant growth in average home prices and fluctuations in average rent prices.
The ownership percentage in zip code 21742 has shown a consistent upward trend, rising from 63% in 2013 to 68% in 2022. This increase in homeownership corresponds with a substantial rise in average home prices. In 2013, the average home price was $197,927, which steadily climbed to $311,574 by 2022, representing a 57.4% increase over this period. The most dramatic surge occurred between 2020 and 2022, with average home prices jumping from $246,744 to $311,574, a 26.3% increase in just two years.
Federal interest rates have played a significant role in homeownership trends. 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 increase in homeownership, as it made mortgages more affordable for potential buyers. The sharp rise in homeownership from 67% in 2019 to 70% in 2020 coincides with a drop in interest rates from 2.16% to 0.38%, further illustrating this relationship.
Conversely, the renter percentage in zip code 21742 has decreased from 37% in 2013 to 32% in 2022. Despite this decline, average rent prices have shown variability. In 2013, the average rent was $1,185, which peaked at $1,236 in 2014 before fluctuating in subsequent years. By 2022, the average rent had decreased to $1,107, a 6.6% reduction from the 2013 figure. This trend suggests that despite a smaller renter population, rental prices have remained relatively stable, possibly due to increased housing supply or economic factors affecting the local rental market.
Looking at the most recent data, the average home price in zip code 21742 for 2023 was $322,367, and for 2024 it is $328,645. This represents a continued upward trend in home values, with a 2% increase from 2023 to 2024. Interestingly, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically discourage home buying, the area has maintained its upward trajectory in home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 21742 will continue to rise, albeit at a potentially slower rate due to the current high-interest rate environment. We project that by 2029, average home prices could reach approximately $380,000 to $400,000, assuming a moderate annual growth rate of 3-4%. For average rent prices, we expect a modest increase, potentially reaching $1,250 to $1,300 by 2029, factoring in historical fluctuations and the area's economic growth.
In summary, zip code 21742 has demonstrated a robust housing market with increasing homeownership rates and rising average home prices. The area has shown resilience in maintaining home value growth even in the face of rising interest rates. While the renter population has decreased, rent prices have remained relatively stable. These trends suggest a strong local economy and sustained demand for housing in the Fountainhead-Orchard Hills area of Maryland.
