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Average Home Values and Ownership in Zip Code 27705: A Decade of Growth and Stability
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 27705, located in Durham, North Carolina, has experienced significant changes in its housing market over the past decade. This area, known for its proximity to Duke University and Research Triangle Park, has seen notable shifts in homeownership rates, average home prices, and average rent prices. The homeownership rate in zip code 27705 has remained relatively stable, fluctuating between 44% and 47% from 2013 to 2022. Despite this stability, average home prices have shown a dramatic upward trend. In 2010, the average home price was $215,017, which steadily increased to $445,105 by 2022, representing a substantial 107% increase over 12 years. This trend suggests that while the proportion of homeowners has remained consistent, the cost of homeownership has risen significantly.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2010 to 2016, interest rates remained exceptionally low, hovering between 0.1% and 0.4%. During this period, homeownership rates in zip code 27705 remained relatively stable, ranging from 44% to 45%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership, reaching 47% in 2019. This could be attributed to potential buyers rushing to purchase homes before interest rates climbed further.
The rental market in zip code 27705 has also experienced significant changes. The percentage of renters has fluctuated slightly, ranging from 53% to 56% between 2013 and 2022. Average rent prices have shown a consistent upward trend, increasing from $988 in 2013 to $1,145 in 2022, a 16% rise over nine years. This increase in rent prices, coupled with the area's growing population (from 42,283 in 2010 to 47,430 in 2022), suggests a strong demand for rental properties in the area.
In 2023 and 2024, the housing market in zip code 27705 continued its upward trajectory. The average home price reached $453,270 in 2023 and further increased to $470,039 in 2024, representing a 3.7% year-over-year growth. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and rent prices over the next five years. Average home prices could potentially reach $550,000 to $600,000 by 2029, assuming a conservative annual growth rate of 3-5%. Average rent prices might increase to $1,300-$1,400 per month, considering the historical growth rate and the area's increasing population density.
In summary, zip code 27705 has demonstrated a robust and growing housing market. The area has maintained a relatively stable balance between homeowners and renters, despite significant increases in both home prices and rent. The consistent population growth and rising property values suggest that this zip code remains an attractive location for both residents and investors. The interplay between federal interest rates, housing prices, and homeownership rates highlights the complex dynamics shaping this local real estate market.
