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Average Home Values and Ownership in Zip Code 27587: Wake Forest's Resilient 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
Wake Forest, North Carolina, zip code 27587, is a rapidly growing suburban area that has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices from 2010 to 2024.
The homeownership rate in Wake Forest has remained relatively stable, fluctuating between 75% and 78% from 2013 to 2022. Despite this stability, average home prices have shown a consistent upward trend. In 2010, the average home price was $269,816, which increased to $515,278 by 2022, representing a substantial 91% increase over 12 years.
Examining the relationship between federal interest rates and homeownership rates reveals an interesting pattern. Despite historically low interest rates from 2010 to 2021, ranging from 0.08% to 2.16%, the homeownership rate remained relatively constant. This suggests that other factors, such as local economic conditions or housing supply, may have played a more significant role in determining homeownership rates in Wake Forest.
The renter population in Wake Forest has also remained relatively stable, ranging from 21% to 24% between 2013 and 2022. Average rent prices have shown a general upward trend, increasing from $1,163 in 2013 to $1,247 in 2022, a 7.2% increase over nine years. This rise in rent prices, while notable, is less dramatic than the increase in average home prices during the same period. The population growth in Wake Forest, from 50,500 in 2010 to 83,404 in 2022, may have contributed to the upward pressure on both home prices and rents.
In 2023 and 2024, the housing market in Wake Forest continued to evolve. The average home price in 2023 was $516,936, showing a slight increase from 2022. In 2024, the average home price rose further to $524,722. Notably, federal interest rates increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in Wake Forest may continue to rise over the next five years, potentially reaching around $600,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,400 per month within the same timeframe. However, these projections are subject to various economic factors and market conditions.
In summary, Wake Forest has experienced substantial growth in both population and housing prices over the past decade. While homeownership rates have remained relatively stable, average home prices have nearly doubled. Rent prices have also increased, albeit at a slower pace. The recent rise in interest rates, coupled with continued population growth, may shape the future of Wake Forest's housing market, potentially affecting affordability and homeownership trends in the coming years.
