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Auburn Hills: Rising Home Values and Shifting Ownership Patterns
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
Auburn Hills, a neighborhood in Durham, North Carolina, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has transformed from a predominantly renter-occupied community to one with a growing proportion of homeowners. Average home prices have shown a consistent upward trend, while average rent prices have seen substantial increases in recent years.
The relationship between homeownership rates and average home prices in Auburn Hills has been dynamic. In 2013, the homeownership rate was 42%, with average home prices at $203,577. As home prices steadily increased, reaching $278,480 by 2019, the homeownership rate initially declined to 33%. However, a significant shift occurred in 2020, with homeownership jumping to 48% despite average home prices rising to $296,200. This trend continued, with homeownership reaching 60% in 2022, coinciding with a sharp increase in average home prices to $447,689.
Federal interest rates have played a role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 0.38%. This period saw fluctuations in homeownership, but the overall low rates likely contributed to the significant increase in homeownership from 2020 onwards. The jump in homeownership from 33% in 2019 to 48% in 2020 coincided with a drop in interest rates from 2.16% to 0.38%, making mortgages more affordable.
Renter percentages and average rent prices have shown an inverse relationship to homeownership trends. In 2013, 58% of the population were renters, with average rent at $381. As the renter percentage increased to 74% in 2016, average rent rose modestly to $414. However, a dramatic shift occurred in 2020, with the renter percentage dropping to 52% and average rent spiking to $1,205. This trend continued into 2022, with renters comprising 40% of the population and average rent reaching $1,460.
In 2023, average home prices in Auburn Hills slightly decreased to $444,317, with interest rates rising to 5.02%. Moving into 2024, average home prices have rebounded to $459,466, while interest rates have further increased to 5.33%. These higher interest rates may impact future homeownership trends and housing affordability in the neighborhood.
Applying predictive models to forecast 5-year trends, average home prices in Auburn Hills are anticipated to continue their upward trajectory, potentially reaching around $550,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,800 per month. These projections are based on historical trends and current economic indicators.
In summary, Auburn Hills has experienced a significant shift towards homeownership in recent years, despite rising home prices. The interplay between federal interest rates, housing prices, and rent costs has shaped the neighborhood's housing landscape. The community has transformed from a renter-majority area to one with a strong homeowner presence, reflecting broader economic changes and local market dynamics.
