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Average Home Values and Ownership in Zip Code 27025: A Decade of Growth Amidst Declining Rent Prices
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
Zip code 27025, located in Madison, North Carolina, has experienced significant shifts in homeownership rates and housing prices over the past decade. This area has maintained a consistently high rate of owner-occupied housing, with average home prices showing a steady upward trend.
The homeownership rate in zip code 27025 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the ownership rate was 80%, and it reached its peak of 84% in 2022. This high rate of homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $107,221, which steadily rose to $195,624 by 2022, representing an impressive 82.4% increase over this period.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 80%. As interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership, reaching 82% in 2019. This suggests that despite rising interest rates, other factors were supporting homeownership in the area.
Renter percentages in zip code 27025 have shown an inverse relationship to homeownership rates, naturally fluctuating between 16% and 21% from 2013 to 2022. Interestingly, average rent prices have not consistently followed the trend of homeownership rates or home prices. In 2013, the average rent was $701, which peaked at $728 in 2014 before generally declining to $656 in 2022. This decline in average rent prices occurred despite the overall increase in home values, suggesting a complex local rental market influenced by factors beyond just housing prices.
In 2023 and 2024, the upward trend in average home prices continued in zip code 27025. The average home price reached $198,181 in 2023 and further increased to $205,039 in 2024. This represents a 4.8% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007.
Looking ahead, based on the historical data and current trends, we can predict continued growth in average home prices for zip code 27025 over the next five years. Assuming a similar growth rate to recent years, average home prices could potentially reach around $240,000 by 2029. For rent prices, the trend has been more volatile, but if we consider the slight upward movement in recent years, we might expect average rents to gradually increase to approximately $700-$725 per month by 2029.
In summary, zip code 27025 has demonstrated a robust housing market with consistently high homeownership rates and steadily increasing average home prices. Despite fluctuations in federal interest rates, the area has maintained strong homeownership levels. The rental market has shown more variability, with average rents not directly correlating with home price increases. As the area continues to evolve, it will be important to monitor how these trends develop, especially in light of the recent significant increases in interest rates.
