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Average Home Values and Ownership in Zip Code 27104: A Decade of Growth Near Wake Forest University
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 27104, located in Winston-Salem, North Carolina, covers an area of 12.38 square miles and has experienced significant changes in its housing market over the past decade. From 2013 to 2022, this suburban area saw a slight increase in homeownership rates, rising from 62% to 63%, while average home prices surged from $195,845 to $328,158. This substantial increase in property values, coupled with a relatively stable homeownership rate, suggests a resilient local housing market.
The relationship between homeownership rates and average home prices in zip code 27104 reveals an interesting trend. Despite the significant rise in average home prices, the area maintained a relatively stable homeownership rate. In 2013, when the average home price was $195,845, the homeownership rate stood at 62%. By 2022, even as the average home price climbed to $328,158, the homeownership rate remained steady at 63%. This pattern indicates that residents have managed to maintain homeownership despite rising property values.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 27104. During periods of lower interest rates, such as from 2013 to 2016 when rates remained below 0.5%, the area experienced a slight decrease in homeownership from 62% to 61%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased to 63%. This counterintuitive trend suggests that other local factors may be influencing homeownership decisions beyond just interest rates.
Renter percentages and average rent prices in zip code 27104 have shown some fluctuation over the years. In 2013, 38% of housing units were renter-occupied, with an average rent of $952. By 2022, the percentage of renters decreased slightly to 37%, while the average rent increased to $1,045. Notably, there was a peak in average rent in 2021 at $1,119, coinciding with a lower renter percentage of 35%. These changes may be attributed to shifts in local economic conditions and housing preferences.
The most recent data shows that the average home price in zip code 27104 reached $342,258 in 2023 and further increased to $357,728 in 2024. This represents a significant jump from the 2022 average of $328,158. Concurrently, federal interest rates have also risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in zip code 27104 will continue to rise, albeit at a potentially slower rate due to higher interest rates. Projections suggest that by 2029, average home prices could reach approximately $425,000 to $450,000. For rent prices, the forecast indicates a moderate increase, with average rents potentially reaching $1,200 to $1,300 by 2029.
In summary, zip code 27104 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The area has maintained a relatively stable balance between owners and renters, with a slight trend towards increased homeownership. The recent sharp rise in both home prices and interest rates will likely shape the local housing market in the coming years, potentially affecting affordability and homeownership rates.
