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Average Home Values and Ownership in Zip Code 28604: Mountain Living Meets Rising Property 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
Zip code 28604, representing Beech Mountain in North Carolina, presents an intriguing case study of homeownership and housing market dynamics in a scenic mountain community. Over the past decade, this area has experienced notable fluctuations in both homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
From 2013 to 2022, homeownership rates in zip code 28604 showed an overall upward trend, increasing from 68% to 76%. This 8 percentage point rise indicates a growing preference for property ownership in the area. Concurrently, average home prices demonstrated significant appreciation, rising from $200,925 in 2013 to $450,723 in 2022, representing a remarkable 124% increase over this period. The most dramatic surge occurred between 2020 and 2022, with average home prices jumping from $266,830 to $450,723, a 69% increase in just two years.
The relationship between federal interest rates and homeownership rates in this zip code aligns with typical patterns. For instance, as interest rates remained low from 2013 to 2020 (ranging from 0.08% to 2.16%), homeownership rates generally increased, reaching 73% by 2020. This trend supports the notion that lower interest rates tend to encourage homeownership by making mortgages more affordable. However, it's worth noting that despite rising interest rates in 2022 (1.68%), homeownership continued to climb to 76%, suggesting other local factors may have influenced this trend.
Renter percentages in zip code 28604 showed an inverse relationship to homeownership rates, declining from 32% in 2013 to 24% in 2022. Interestingly, average rent prices exhibited volatility during this period. They peaked at $1,081 in 2017 before declining to $879 in 2022, a 19% decrease. This drop in average rent prices, coupled with the decreasing percentage of renters, could indicate a shift in local housing preferences or changes in the available rental stock.
As of 2024, the average home price in zip code 28604 has reached $476,309, continuing the upward trajectory observed in previous years. This represents a 5.5% increase from the 2022 average of $450,723. The current federal interest rate stands at 5.33%, significantly higher than the 1.68% rate in 2022. Despite this substantial increase in interest rates, the housing market in this area appears to remain robust, with prices continuing to appreciate.
Looking ahead, predictive models suggest that average home prices in zip code 28604 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices, which have been declining, might stabilize or see modest increases as the rental market adjusts to changing demand and overall housing costs. However, these predictions are subject to various economic factors and local market conditions.
In summary, zip code 28604 has experienced a significant shift towards homeownership over the past decade, accompanied by substantial appreciation in average home prices. The area has shown resilience in its housing market, with prices continuing to rise even in the face of increasing interest rates. The declining rental market presents an interesting counterpoint to the robust homeownership trend, suggesting a strong preference for property ownership in this mountain community.
