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Average Home Values and Ownership in Zip Code 27214: A College-Proximate Area's Housing Dynamics
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 27214, located in Greensboro, North Carolina, has experienced significant changes in its housing market over the past decade. The area has seen a gradual decline in homeownership rates, coupled with a substantial increase in average home prices and fluctuating rent prices. These trends reflect the dynamic nature of the local real estate market and its response to various economic factors.
From 2013 to 2022, the homeownership rate in zip code 27214 showed an overall downward trend. Starting at 73% in 2013, it reached a peak of 77% in 2017 before declining to 69% by 2022. This shift in homeownership coincided with a significant rise in average home prices. In 2013, the average home price was $138,338, which steadily increased to $281,761 by 2022, marking a substantial 103.7% increase over this period.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. Between 2013 and 2016, interest rates remained very low (below 0.5%), corresponding with relatively stable homeownership rates around 75-76%. As interest rates began to rise in 2017 (1%) and 2018 (1.83%), homeownership rates initially increased to 77% before starting to decline. Interestingly, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not immediately boost homeownership, likely due to the rapid increase in home prices during this period.
The renter population in zip code 27214 has shown an inverse relationship to homeownership rates. In 2013, 27% of residents were renters, which decreased to 23% by 2017. However, by 2022, the renter population had increased to 31%. Average rent prices have followed a less consistent pattern. Starting at $1,032 in 2013, they peaked at $1,061 in 2014 before declining to $774 in 2022. This represents a 25% decrease in average rent prices from 2013 to 2022, despite the increase in the renter population.
In 2023, the average home price in zip code 27214 continued to rise, reaching $292,226, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $296,601, while interest rates have slightly risen to 5.33%. This consistent upward trend in home prices, coupled with higher interest rates, may continue to impact homeownership rates in the area.
Looking ahead, predictive models suggest that average home prices in zip code 27214 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices, which have been decreasing, may start to stabilize or increase slightly as the renter population grows and housing demand remains high.
In summary, zip code 27214 has experienced a gradual shift towards a higher proportion of renters, accompanied by a substantial increase in average home prices. Despite this, average rent prices have decreased over the past decade. The interplay between federal interest rates, housing affordability, and population growth will continue to shape the housing market in this area, with a trend towards higher home prices and a potentially growing renter population.
