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Aurora, NC: Rising Home Values and Ownership in a Shrinking Town
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
Aurora, a small town in North Carolina spanning just 0.93 square miles, has experienced notable shifts in its housing market over the past decade. These changes reflect broader economic trends and local demographic shifts, particularly in homeownership rates and property values. Homeownership in Aurora has shown a general upward trend, increasing from 69% in 2013 to 75% in 2022. This rise coincides with a substantial increase in average home prices, which grew from $67,043 in 2011 to $126,671 in 2022, representing an 88.9% increase over 11 years. This trend suggests a growing preference for homeownership despite rising property values.
The relationship between federal interest rates and homeownership rates in Aurora follows the expected pattern. As interest rates remained low between 2013 and 2021, ranging from 0.08% to 0.4%, homeownership rates in Aurora increased from 69% to 80%. This aligns with the general principle that lower interest rates make mortgages more affordable, encouraging homeownership.
The percentage of renters in Aurora has decreased over time, dropping from 31% in 2013 to 25% in 2022. Despite this decline in the renter population, average rent prices have shown a steady increase. In 2013, the average rent was $586, which rose to $739 by 2022, marking a 26.1% increase over nine years. This upward trend in rent prices, despite a shrinking renter population, could indicate a tightening rental market or an overall increase in housing costs in the area.
Recent data shows that the average home price in Aurora for 2023 was $125,824, a slight decrease from 2022. However, the 2024 average home price has rebounded to $129,556, indicating a potential return to an upward trend. Federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership trends in Aurora.
Predictive models forecast that average home prices in Aurora will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Projections suggest that by 2029, average home prices could reach approximately $145,000 to $150,000. For rent prices, the forecast indicates a continued upward trend, with average rents potentially reaching $800 to $850 by 2029.
In summary, Aurora has experienced a significant increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the renter population. Despite this, average rent prices have continued to rise. The recent spike in interest rates may influence future housing market dynamics, potentially slowing the rate of increase in home prices and homeownership rates. However, the overall trend points towards continued growth in both the ownership and rental markets in this small North Carolina town.
