ZIP Code 21663 Housing Market

📝 Local Market Notes

The housing market in ZIP code 21663 exhibits a robust upward price trajectory over the recent five-year period. The Home Price Index (HPI) has expanded from 189.87 in 2020 to 318.24 in 2025, representing a cumulative increase of approximately 67.6%. This sustained growth indicates significant appreciation, with the index nearly doubling its 2020 baseline. The most recent annual change of +10.20% underscores continued momentum, suggesting that local demand remains strong despite broader economic headwinds. ZIP 21663 demonstrates a marked divergence from both the county and state averages. While Talbot County recorded a 3.09% year-over-year increase and the state of Maryland saw only a 0.95% rise, the 21663 sub-market outperformed these figures by a substantial margin. This disparity signals that specific local factors, such as limited inventory or high demand for particular property types, are driving prices above the regional norm. The HPI level of 318.2 places this area in a higher price tier compared to nearby ZIP code 21654 (HPI 273.5), although it trails slightly behind ZIP 21625 (HPI 283.8) in absolute index value, though 21625 shows even higher velocity at +15.57%. Based on the parent county’s American Community Survey data, which lists a median home value of $409,700 and a median household income of $84,811, ZIP 21663 functions as a mid-to-upper-tier owner-occupied sub-market. With an owner-occupancy rate of 75.1% in the county, the area is predominantly residential rather than renter-heavy. The median gross rent of $1,256/month further supports a stable housing ecosystem. For prospective buyers, the current 30-year mortgage rate of 7.40% significantly impacts affordability, requiring higher income levels to match the appreciated home values. Residents should note that the rapid appreciation in 21663 suggests a competitive environment where equity gains are substantial, but entry costs are increasingly elevated relative to the state average.

Based on FHFA House Price Index data.