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Average Home Values and Ownership in Zip Code 27976: A Decade of Change in South Mills, North Carolina
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 27976, located in South Mills, North Carolina, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 27976 has shown a slight decline over the years, dropping from 90% in 2013 to 86% in 2022. This trend coincides with a substantial increase in average home prices, which rose from $219,838 in 2013 to $363,219 in 2022, representing a 65% increase over this period. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in the area. For instance, the period from 2013 to 2016 saw relatively stable homeownership rates around 90%, coinciding with historically low interest rates ranging from 0.11% to 0.4%. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% by 2022, homeownership rates showed a slight decline, falling to 86% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in zip code 27976 has shown interesting trends as well. The percentage of renters increased from 10% in 2013 to 14% in 2022. Interestingly, average rent prices have fluctuated significantly during this period. From 2013 to 2019, average rent prices remained relatively stable, ranging from $1,274 to $1,311 per month. However, there was a dramatic decrease in 2020, with average rent dropping to $745, followed by a slight increase to $749 in 2022. This sharp decline in rent prices coincided with a notable increase in the renter population, suggesting that lower rents may have attracted more renters to the area.
Looking at the most recent data, average home prices in zip code 27976 continued to rise, reaching $377,098 in 2023 and $395,667 in 2024. This represents a further 9% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may pose challenges for potential homebuyers, potentially impacting future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 27976 to continue their upward trajectory, potentially reaching around $450,000 by 2029. This projection is based on the consistent growth pattern observed over the past decade. For average rent prices, the forecast is less certain due to the recent volatility. However, if the market stabilizes, we might see a gradual increase, potentially reaching around $900 per month by 2029.
In summary, zip code 27976 has experienced a gradual decline in homeownership rates alongside significant increases in average home prices. The rental market has seen an increase in the proportion of renters, despite fluctuations in average rent prices. The interplay between federal interest rates, home prices, and affordability continues to shape the housing landscape in this area, with recent data suggesting ongoing challenges for potential homebuyers due to rising prices and interest rates.
