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Average Home Values and Ownership in Carolina Beach Zip Code 28428: A Decade of Coastal Real Estate Trends
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
Carolina Beach, located in zip code 28428 in North Carolina, has experienced significant changes in homeownership rates and property values over the past decade. This coastal community has seen a notable shift towards increased homeownership, accompanied by substantial growth in average home prices and fluctuating rental costs.
From 2013 to 2022, the percentage of owner-occupied homes in Carolina Beach increased dramatically, rising from 54% to 76%. This 22 percentage point increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $231,501, but by 2022, it had more than doubled to $553,846, representing a 139% increase over nine years.
The trend of increasing homeownership rates in Carolina Beach appears to have been influenced by federal interest rates. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership rates increased modestly from 54% to 57%. As interest rates began to rise more significantly from 2017 to 2019 (1% to 2.16%), homeownership rates accelerated, reaching 66% by 2019. This trend continued even as interest rates dropped again in 2020 and 2021, with homeownership reaching 76% by 2022 despite a slight increase in interest rates to 1.68%.
As homeownership rates increased, the percentage of renters in Carolina Beach decreased correspondingly, from 46% in 2013 to 24% in 2022. Interestingly, average rent prices did not show a consistent trend during this period. In 2013, the average rent was $1,221, and it fluctuated over the years, reaching a peak of $1,329 in 2015 before settling at $1,224 in 2022. This relative stability in rent prices, despite the significant decrease in the renter population, suggests that demand for rental properties remained strong, possibly due to factors such as tourism or seasonal housing needs.
In 2023 and 2024, the average home prices in Carolina Beach continued to rise, reaching $576,722 in 2023 and $592,481 in 2024. This represents a 4.1% increase from 2022 to 2023 and a further 2.7% increase from 2023 to 2024. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007.
Looking ahead, based on the observed trends, we can predict that average home prices in Carolina Beach will likely continue to increase over the next five years, albeit at a potentially slower rate due to higher interest rates. Assuming a conservative annual growth rate of 3%, average home prices could reach approximately $686,000 by 2029. Rent prices, which have shown more volatility, may stabilize or increase slightly, potentially reaching an average of $1,350 to $1,400 per month by 2029, assuming a 2% annual increase.
In summary, Carolina Beach has experienced a significant shift towards homeownership, with a corresponding increase in average home prices. Despite a decrease in the renter population, rent prices have remained relatively stable. The community has shown resilience in its housing market, with continued growth in property values even in the face of rising interest rates. These trends suggest a strong local economy and sustained demand for housing in this coastal zip code.
