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Zip Code 21821: Rising Home Values and Strong Ownership in Rural 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 21821, located in Dames Quarter, Maryland, presents an interesting case study of homeownership and housing market dynamics in a small, rural community. This area has experienced fluctuations in population and housing trends over the past decade, with a general trend towards increased homeownership and rising average home prices. The homeownership rate in zip code 21821 has shown a notable increase from 82% in 2013 to 87% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices, which grew from $114,188 in 2013 to $183,262 in 2022, representing a 60.5% increase over this period. The most substantial year-over-year increase occurred between 2020 and 2021, with average home prices jumping from $149,420 to $168,626, a 12.9% rise in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in this zip code. The period of historically low interest rates from 2013 to 2021, with rates ranging from 0.08% to 0.4%, likely contributed to the increase in homeownership. This environment of cheap financing made mortgage payments more affordable, potentially encouraging more residents to transition from renting to owning. The sharp rise in interest rates in 2022 to 1.68% and further to 5.02% in 2023 may have implications for future homeownership rates in the area.
Renter percentages in zip code 21821 have correspondingly decreased from 18% in 2013 to 13% in 2022. Despite this decline in the renter population, average rent prices have shown volatility with an overall upward trend. Average rent increased from $966 in 2013 to $1,068 in 2022, peaking at $1,124 in 2016. The fluctuations in rent prices may be attributed to the changing population dynamics, with the area's population decreasing from 532 in 2013 to 490 in 2022, potentially affecting rental demand and pricing.
Looking at the most recent data, average home prices in zip code 21821 continued to rise, reaching $193,571 in 2023 and $196,762 in 2024. This represents a 5.6% increase from 2022 to 2023 and a further 1.6% increase from 2023 to 2024. Concurrently, federal interest rates have remained elevated, standing at 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying activity in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 21821 will continue to rise, albeit at a more moderate pace. Based on the historical data and current market conditions, we project average home prices could reach approximately $220,000 to $230,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,200 to $1,300 per month in the same timeframe, assuming the current trends in population and housing supply remain relatively stable.
In summary, zip code 21821 has demonstrated a strong trend towards homeownership over the past decade, with a corresponding increase in average home prices. The area has weathered significant economic changes, including periods of low interest rates that likely fueled homeownership growth. As interest rates have risen in recent years, it will be crucial to monitor how this impacts the local housing market dynamics. The projected continued growth in both home prices and rents suggests ongoing demand for housing in this rural Maryland community, despite its small and slightly declining population.
