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Zip Code 21817: Rising Home Values and Ownership Rates in Crisfield's Coastal Community
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 21817, located in Crisfield, Maryland, presents an intriguing case study of housing market dynamics in a small coastal community. Over the past decade, this area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local factors.
The homeownership rate in zip code 21817 has remained relatively stable, hovering around 60-64% between 2013 and 2022. However, there have been some notable shifts in average home prices during this period. In 2013, the average home price was $88,984, which declined to a low of $83,011 in 2016. From this point, a steady upward trend began, with prices reaching $142,877 by 2022, representing a significant 72% increase over six years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates remained stable around 61-63%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed slight fluctuations but ultimately increased to 64% in 2022, suggesting local factors may have outweighed the impact of rising interest rates.
Renter percentages in zip code 21817 have generally mirrored homeownership rates, ranging from 36% to 41% between 2013 and 2022. Average rent prices have shown more volatility than homeownership rates. In 2013, the average rent was $679, which increased to $770 in 2016, representing a 13.4% rise. However, rent prices then experienced a decline, dropping to $667 in 2021 before rebounding to $736 in 2022. This fluctuation in rent prices occurred against a backdrop of declining population, from 4,816 in 2013 to 3,995 in 2022, which may have influenced rental market dynamics.
Moving to more recent data, in 2023, the average home price in zip code 21817 reached $146,858, continuing the upward trend observed in previous years. This represents a 2.8% increase from 2022. In 2024, the average home price has further climbed to $162,674, marking a substantial 10.8% increase from 2023. Notably, these price increases have occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. This suggests strong local demand or other factors supporting home values in the area, even in the face of higher borrowing costs.
Looking ahead, based on the observed trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 21817 may continue their upward trajectory, potentially reaching around $200,000 by 2029 if the current growth rate persists. However, this growth could moderate due to higher interest rates. Average rent prices might stabilize or show modest increases, potentially reaching $800-$850 per month by 2029, assuming local economic conditions remain stable and population trends don't shift dramatically.
In summary, zip code 21817 has demonstrated resilience in its housing market, with steadily increasing home values despite population decline and fluctuating interest rates. The area has maintained a consistent homeownership rate while experiencing more volatility in its rental market. The recent surge in home prices, even in the face of rising interest rates, suggests a robust local housing demand that could continue to shape the market in the coming years.
