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Average Home Values and Ownership in Zip Code 27948: A Decade of Growth in Kill Devil Hills
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
Kill Devil Hills, located in zip code 27948 in North Carolina, is a coastal town known for its beautiful beaches and historical significance as the site of the Wright brothers' first successful powered flight. Over the past decade, this area has experienced notable shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics.
The homeownership rate in Kill Devil Hills has shown a significant increase from 2013 to 2022. In 2013, 65% of residents were homeowners, and this figure rose steadily to reach 76% by 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $246,121, and by 2022, it had nearly doubled to $466,458, representing an impressive 89.5% increase over nine years.
The relationship between federal interest rates and homeownership rates in Kill Devil Hills demonstrates an interesting pattern. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable, hovering around 61-62%. However, as interest rates began to rise from 2017 onwards, surprisingly, homeownership rates in Kill Devil Hills also increased. This trend contradicts the typical inverse relationship between interest rates and homeownership, suggesting that local factors may have played a more significant role in driving homeownership in this area.
Renter percentages in Kill Devil Hills have decreased correspondingly with the rise in homeownership. In 2013, 35% of residents were renters, but by 2022, this had dropped to 24%. Despite this decrease in the renter population, average rent prices have generally increased over the same period. In 2013, the average rent was $1,080, and it rose to $1,224 by 2022, an increase of 13.3%. This upward trend in rent prices, despite a shrinking renter population, suggests a strong demand for rental properties in the area, possibly driven by tourism or seasonal residents.
As of 2024, the average home price in Kill Devil Hills has reached $507,650, a 8.7% increase from the 2022 figure. This continued appreciation occurs despite the federal interest rate climbing to 5.33% in 2024, indicating strong local market factors driving home values. The 2023 average home price was $492,084, showing a steady year-over-year increase in property values.
Looking ahead, predictive models suggest that both average home prices and rent prices in Kill Devil Hills are likely to continue their upward trajectory over the next five years. Home prices are projected to increase by approximately 5-7% annually, potentially reaching around $670,000 by 2029. Rent prices are expected to grow at a more moderate pace of 3-4% per year, potentially reaching about $1,450 by 2029.
In summary, Kill Devil Hills has experienced a significant shift towards homeownership over the past decade, accompanied by substantial increases in property values. This trend has persisted even in the face of rising interest rates, suggesting strong local demand for housing. The rental market, while shrinking in terms of percentage of residents, has seen steady increases in prices, indicating a robust demand for rental properties as well. These trends point to Kill Devil Hills as an area with a dynamic and growing real estate market, likely driven by its attractive coastal location and historical significance.
