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Zip Code 21784: Rising Home Values and Stable Ownership in Eldersburg, 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
Eldersburg, located in zip code 21784 in Maryland, is a suburban community known for its high homeownership rates and stable real estate market. Over the past decade, this area has experienced notable trends in both homeownership and housing prices, reflecting broader economic patterns and local market dynamics.
The homeownership rate in Eldersburg has remained consistently high, hovering around 86-88% between 2013 and 2022. This stability in homeownership is particularly remarkable given the fluctuations in average home prices during the same period. In 2013, the average home price in the area was $345,243, which steadily increased to $504,758 by 2022, representing a significant 46% increase over nine years. Despite this substantial rise in home values, the homeownership rate remained relatively unchanged, suggesting a strong local economy and a continued preference for homeownership among residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Eldersburg. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which coincided with a slight increase in homeownership from 86% to 87%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate still managed to reach its peak of 88% in 2018, demonstrating the area's resilience to moderate interest rate increases.
The rental market in Eldersburg has shown interesting trends in relation to the homeownership patterns. The percentage of renters remained relatively low, fluctuating between 12% and 14% from 2013 to 2022. Average rent prices, however, displayed more volatility. In 2013, the average rent was $1,377, which increased to a peak of $1,546 in 2015 before experiencing some fluctuations. By 2022, the average rent stood at $1,366, slightly lower than a decade earlier, despite the overall increase in home values. This trend suggests that the rental market in Eldersburg has remained competitive and relatively affordable compared to the rising costs of homeownership.
Looking at more recent data, the average home price in Eldersburg continued its upward trajectory, reaching $521,328 in 2023 and $531,161 in 2024. This represents a further 5.2% increase from 2022 to 2024, despite the significant rise in federal interest rates to 5.02% in 2023 and 5.33% in 2024. These figures indicate a robust housing market that has maintained growth even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit at a potentially slower rate due to the higher interest rate environment. Average home prices could reach approximately $575,000 to $600,000 by 2029, assuming a moderate annual growth rate of 1.5% to 2.5%. For average rent prices, we might expect a gradual increase to around $1,500 to $1,600 per month by 2029, factoring in historical fluctuations and the relationship between home values and rental rates.
In summary, Eldersburg in zip code 21784 demonstrates a remarkably stable and high rate of homeownership, even as average home prices have risen substantially over the past decade. The area has shown resilience to interest rate fluctuations, maintaining strong homeownership levels despite recent increases. While the rental market has remained a smaller but consistent segment, it has provided a relatively affordable alternative to homeownership. The continued rise in home values, even in a high-interest rate environment, suggests ongoing demand and confidence in the local real estate market, pointing to a positive outlook for both homeowners and investors in the coming years.
