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Average Home Values and Ownership in Zip Code 27980: A Coastal Community's Housing Trends
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
Arrowhead Beach, situated in zip code 27980 in North Carolina, has experienced significant changes in homeownership rates and housing prices over the past decade. This coastal community has witnessed a general trend of decreasing homeownership, accompanied by rising average home prices and fluctuating average rent costs. The homeownership rate in Arrowhead Beach has shown a marked decline from 2017 to 2022. In 2017, the area boasted a high 93% homeownership rate, which steadily decreased to 72% by 2022. This 21 percentage point drop coincided with a substantial increase in average home prices. In 2016, the average home price was $136,014, and by 2022, it had risen to $209,824, representing a 54% increase over six years.
The relationship between federal interest rates and homeownership rates in Arrowhead Beach appears to follow the expected trend. As interest rates remained low from 2016 to 2021, ranging from 0.40% to 1.68%, homeownership rates initially stayed high, peaking at 93% in 2017. However, despite continued low interest rates, homeownership began to decline from 2018 onwards, possibly due to rising home prices outpacing the benefits of low interest rates.
The renter population in Arrowhead Beach has grown inversely to the decline in homeownership. The percentage of renters increased from 7% in 2017 to 28% in 2022, a 21 percentage point increase. Interestingly, average rent prices have shown volatility during this period. In 2014, the average rent was $1,320, which remained relatively stable until 2017. However, there was a sharp decline to $614 in 2018, followed by a gradual increase to $906 by 2022. This fluctuation in rent prices doesn't seem to correlate directly with the increasing renter population, suggesting other factors may be influencing rental market dynamics.
In 2023 and 2024, the average home prices in Arrowhead Beach continued to rise, reaching $220,774 in 2023 and slightly decreasing to $220,314 in 2024. This represents a 5.2% increase from 2022 to 2023, followed by a marginal 0.2% decrease from 2023 to 2024. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, which may contribute to the slowing growth in home prices.
Applying predictive models to forecast 5-year trends, we can anticipate a continued, but potentially slower, increase in average home prices in Arrowhead Beach. The rate of increase may moderate due to higher interest rates, potentially reaching around $240,000 by 2029. Average rent prices are likely to continue their upward trajectory, possibly stabilizing around $1,000 to $1,100 per month, reflecting the growing renter population and overall housing market trends.
In summary, Arrowhead Beach has experienced a significant shift from a predominantly homeowner community to one with a growing renter population. This transition has occurred alongside rising home prices and fluctuating rent costs. The recent sharp increase in interest rates may further impact these trends, potentially slowing home price growth and stabilizing the rental market in the coming years.
