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Average Home Values and Ownership in Zip Code 27609: Raleigh'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
Zip code 27609, located in Raleigh, North Carolina, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, alongside steady increases in both average home prices and average rent prices.
The homeownership rate in zip code 27609 has shown a slight downward trend over the years. In 2013, the homeownership rate stood at 57%, but by 2022, it had decreased to 51%. This decline coincided with a substantial increase in average home prices. In 2013, the average home price was $227,219, which rose dramatically to $518,509 by 2022, representing a 128% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents in the area.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable, hovering around 55-58%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a slight decline in homeownership rates, dropping to 55% by 2019. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 27609 have shown a gradual increase, moving from 43% in 2013 to 49% in 2022. This rise in renters corresponds with an increase in average rent prices. In 2013, the average rent was $1,104, which grew to $1,398 by 2022, a 27% increase. The population in the zip code also grew during this period, from 31,404 in 2013 to 34,977 in 2022, potentially contributing to the increased demand for rental properties and subsequent rise in rent prices.
Looking at the most recent data, the average home price in zip code 27609 reached $535,144 in 2023 and further increased to $561,186 in 2024. This represents a 3.2% increase from 2022 to 2023 and a 4.9% increase from 2023 to 2024, indicating a continued upward trend in home values. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 27609 will continue to rise, potentially reaching around $650,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching approximately $1,600 by 2029, assuming the current growth rate continues.
In summary, zip code 27609 has experienced a gradual shift towards renting, with homeownership rates declining as average home prices have significantly increased. The area has seen steady population growth, contributing to rising demand for both owned and rented housing. The recent sharp increase in federal interest rates may further impact homeownership trends in the coming years. As the housing market continues to evolve, it will be crucial to monitor these trends and their effects on the local community.
