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Zip Code 21904: Port Deposit's Rising Home Values and Ownership Amidst Interest Rate Fluctuations
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
Port Deposit, a town in Maryland with zip code 21904, has experienced significant shifts in its housing market over the past decade. This area has seen a notable increase in homeownership rates, coupled with fluctuations in average home prices and rent costs. The town's unique characteristics have contributed to these trends, shaping its real estate landscape.
The homeownership rate in Port Deposit has shown a steady upward trend, rising from 79% in 2013 to 86% in 2022. This increase in homeownership coincides with a general upward trajectory in average home prices. In 2013, the average home price was $223,523, which rose to $352,791 by 2022, representing a significant 57.8% increase over this period. This trend suggests a growing preference for homeownership in the area, possibly driven by the perceived value and investment potential of local properties.
Federal interest rates have played a crucial role in shaping homeownership trends in Port Deposit. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates increased from 79% to 81%, likely due to more affordable financing options. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates continued to climb, reaching 86% in 2022. This suggests that other factors, such as local economic conditions or housing market dynamics, may have outweighed the impact of rising interest rates on homeownership decisions in Port Deposit.
Conversely, the percentage of renters in Port Deposit has decreased from 21% in 2013 to 14% in 2022. Despite this decline, average rent prices have shown an overall upward trend. In 2013, the average rent was $940, which increased to $1,102 by 2022, representing a 17.2% rise. This increase in rent prices, coupled with a decreasing renter population, could indicate a tightening rental market with potentially higher-quality or more desirable rental properties commanding premium prices.
The year 2023 saw further increases in both average home prices and interest rates. The average home price in Port Deposit reached $364,466, continuing the upward trend from previous years. Meanwhile, federal interest rates rose significantly to 5.02%, marking a substantial increase from the 1.68% seen in 2022. Moving into 2024, the housing market in Port Deposit continues to show strength, with average home prices climbing to $379,092. Interest rates have also continued their upward trajectory, reaching 5.33% in 2024.
Looking ahead, predictive models suggest that Port Deposit's housing market will likely continue its upward trend over the next five years. Average home prices are projected to increase at a moderate pace, potentially reaching around $425,000 by 2029. Rent prices are also expected to rise, albeit at a slower rate, possibly reaching an average of $1,300 per month in the same timeframe.
In summary, Port Deposit's housing market has demonstrated resilience and growth over the past decade. The significant increase in homeownership rates, coupled with rising home values, indicates a strong preference for property ownership in the area. Despite rising interest rates, the demand for homes remains robust. The rental market, while shrinking in terms of occupancy, has seen increases in average rent prices, suggesting a competitive landscape for quality rental properties. These trends point to a dynamic and evolving real estate market in Port Deposit, with continued growth expected in the coming years.
