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Zip Code 21875: Rising Home Values and Ownership in Delmar, 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 21875, located in Delmar, Maryland, has experienced significant demographic and real estate changes over the past decade. This area has seen a notable increase in population and homeownership rates, coupled with fluctuating average home prices and average rent prices.
The homeownership rate in zip code 21875 has shown a general upward trend, increasing from 64% in 2013 to 71% in 2022. This rise in homeownership coincides with a substantial increase in average home prices, which grew from $153,905 in 2013 to $258,634 in 2022, representing a 68% increase over this period. The most significant jump in average home prices occurred between 2020 and 2022, with a 26% increase from $205,433 to $258,634.
Federal interest rates have played a crucial role in shaping homeownership trends in this area. 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 rates, as it made mortgage financing more affordable for potential buyers. The sharp rise in homeownership from 67% in 2020 to 73% in 2021 coincided with interest rates dropping to a mere 0.08% in 2021, the lowest in the observed period.
Conversely, the percentage of renters in zip code 21875 has decreased from 36% in 2013 to 29% in 2022. Despite this decline in the renter population, average rent prices have shown volatility. Average rent peaked at $1,323 in 2014 before declining to $994 in 2022, a 25% decrease. This trend suggests that the local rental market may have become more competitive or that there may have been an increase in more affordable rental options.
In 2023 and 2024, average home prices in zip code 21875 continued to rise, reaching $271,478 in 2023 and $284,535 in 2024. This represents a 10% increase from 2022 to 2024. Interestingly, this price growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This suggests a strong demand for housing in the area, potentially driven by factors such as local economic growth or increased desirability of the location.
Looking ahead, based on the historical data and current trends, we can expect average home prices in zip code 21875 to continue their upward trajectory over the next five years. A conservative estimate would suggest an annual growth rate of 4-5%, potentially reaching around $345,000 by 2029. Average rent prices, which have been more volatile, may stabilize or see modest increases, possibly reaching $1,100-$1,200 per month in the same timeframe.
In summary, zip code 21875 has experienced a significant shift towards homeownership, accompanied by substantial growth in average home prices. The area has demonstrated resilience in its housing market, with prices continuing to rise even in the face of increasing interest rates. While the rental market has seen some fluctuations, the overall trend suggests a strong preference for homeownership in this community.
