Loading Content...
Average Home Values and Ownership in Zip Code 27517: Chapel Hill's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 27517, encompassing Chapel Hill in North Carolina, has experienced significant changes in homeownership rates and housing prices over the past decade. This area, known for its academic atmosphere and cultural diversity, reflects broader economic trends and local market dynamics in its real estate landscape. The homeownership rate in zip code 27517 has shown a slight downward trend, moving from 71% in 2013 to 68% in 2022. Concurrently, average home prices have exhibited a substantial upward trajectory. In 2013, the average home price stood at $353,105, which steadily increased to $596,354 by 2022, representing a significant 68.9% growth over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with relatively stable homeownership rates around 69-70%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates held steady at 69%. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not lead to an immediate increase in homeownership, possibly due to economic uncertainties during the pandemic.
The renter population in zip code 27517 has seen a modest increase, from 29% in 2013 to 32% in 2022. This trend correlates with fluctuations in average rent prices. In 2013, the average rent was $1,286, which peaked at $1,405 in 2020 before settling at $1,377 in 2022. The increase in the renter population, despite rising rent prices, could be attributed to the growing overall population in the area, which rose from 25,125 in 2013 to 28,244 in 2022.
As of 2024, the average home price in zip code 27517 has reached $647,753, marking a 4% increase from $623,118 in 2023. This continued appreciation occurs despite the federal interest rate climbing to 5.33% in 2024, up from 5.02% in 2023. These figures indicate a resilient housing market in the area, with demand potentially outpacing the effects of higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in zip code 27517 may continue to rise over the next five years, potentially reaching around $750,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,500 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 27517 has experienced a gradual shift towards a slightly higher proportion of renters, while both average home prices and rent have shown significant growth. The area's desirability, as evidenced by its population growth and rising property values, suggests a robust real estate market that has been resilient to economic fluctuations and interest rate changes. The continuation of these trends could further impact the accessibility of homeownership and the rental market dynamics in this Chapel Hill community.
