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Average Home Values and Ownership in Zip Code 28083: A Decade of Change in Kannapolis' Textile Hub
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 28083, located in Kannapolis, North Carolina, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual shift in the balance between owners and renters, coupled with notable fluctuations in housing costs.
The ownership percentage in zip code 28083 has shown a declining trend over the years, while average home prices have consistently increased. In 2013, the homeownership rate was 64%, with an average home price of $90,250. By 2022, the ownership rate had decreased to 58%, while the average home price had risen dramatically to $245,588. This inverse relationship suggests that as home prices increased, fewer residents were able to afford homeownership, leading to a shift towards renting.
Federal interest rates have played a role in homeownership trends in this zip code. From 2013 to 2016, when interest rates were consistently low (between 0.09% and 0.40%), the homeownership rate remained relatively stable, only declining slightly from 64% to 59%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate continued its gradual decline, settling at 58% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter percentage in zip code 28083 has shown an upward trend, corresponding with changes in average rent prices. In 2013, 36% of residents were renters, with an average rent of $1,004. By 2022, the renter percentage had increased to 42%, while the average rent had decreased slightly to $904. This trend suggests that despite the lower average rent, a larger portion of the population has shifted towards renting, possibly due to the increasing home prices making homeownership less attainable.
Looking at more recent data, the average home price in zip code 28083 continued to rise in 2023, reaching $256,348, and further increased to $264,752 in 2024. This upward trend in home prices has occurred despite a significant increase in interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may further impact homeownership rates in the coming years.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in zip code 28083 will continue to rise, albeit at a potentially slower rate due to the higher interest rates. Average rent prices may see a modest increase as demand for rental properties potentially grows in response to the challenges of homeownership. However, this growth in rent prices is expected to be tempered by the overall economic conditions and local market factors.
In summary, zip code 28083 has experienced a shift towards renting, with declining homeownership rates coinciding with rising average home prices. The interplay between federal interest rates, home prices, and rent costs has significantly influenced these housing trends. As the area continues to evolve, it will be crucial to monitor these factors to understand their impact on the local housing market and community dynamics.
