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Average Home Values and Ownership in Zip Code 27510: A Decade of Change in Carrboro's Housing Market
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 27510, representing Carrboro, North Carolina, has experienced significant changes in homeownership rates and housing costs over the past decade. This vibrant community, known for its diverse population and progressive atmosphere, reflects broader economic trends and local market dynamics in its housing market.
From 2013 to 2022, homeownership rates in Carrboro fluctuated, starting at 23% in 2013, peaking at 29% in 2017, and settling at 26% by 2022. This trend coincided with significant changes in average home prices. In 2013, the average home price was $203,469, which steadily increased to $391,030 by 2022, representing a substantial 92% increase over this period. The most dramatic rise occurred between 2020 and 2022, with prices jumping from $289,740 to $391,030, a 35% increase in just two years.
Federal interest rates played a crucial role in these housing market trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of steady growth in homeownership rates from 23% to 27%. As interest rates began to rise more significantly from 2017 onwards, reaching 2.16% in 2019, homeownership rates stabilized around 27-28%. The sharp drop in interest rates to 0.08% in 2021 likely contributed to the sustained high average home prices despite the economic uncertainties of that period.
Renter percentages in Carrboro have shown an inverse relationship to homeownership rates, declining from 74% in 2013 to 68% in 2017, before rising again to 74% by 2022. Average rent prices have steadily increased over this period, from $1,018 in 2013 to $1,199 in 2022, a 17.8% increase. Notably, the most significant jump in rent occurred between 2020 and 2021, rising from $1,180 to $1,230, possibly reflecting increased demand for rental properties as homeownership became less attainable for some residents due to rising home prices.
In 2023 and 2024, the housing market in Carrboro continued its upward trajectory. The average home price reached $414,868 in 2023 and further increased to $439,889 in 2024, representing a 6% and 12.5% increase from 2022, respectively. This growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local demand and limited housing supply.
Looking ahead, based on historical trends and current market conditions, we can anticipate continued growth in both average home prices and rent in Carrboro over the next five years. Average home prices are projected to potentially reach around $550,000 by 2029, assuming a conservative annual growth rate of 4-5%. Average rent prices could similarly increase to approximately $1,400-$1,500 per month, following the trend of steady annual increases observed in recent years.
In summary, Carrboro's housing market has demonstrated remarkable resilience and growth over the past decade. The area has seen substantial appreciation in home values, particularly in recent years, alongside modest increases in rent prices. While homeownership rates have fluctuated, the overall trend suggests a stable balance between owners and renters in the community. The continued rise in housing costs, coupled with high interest rates, may present challenges for affordability, potentially influencing future homeownership rates and rental demand in this dynamic North Carolina town.
