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Average Home Values and Ownership in Zip Code 28605: A Decade of Resilience in Blowing Rock
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 28605, located in Blowing Rock, North Carolina, has experienced notable shifts in homeownership rates, average home prices, and average rent prices over the past decade. This picturesque mountain town, known for its scenic beauty and tourism, has seen a dynamic real estate market with interesting trends in ownership and rental patterns. The homeownership rate in zip code 28605 has remained relatively stable, with a slight increase from 60% in 2013 to 62% in 2022. During this period, average home prices have shown a significant upward trend. In 2013, the average home price was $355,486, which steadily increased to $670,531 by 2022, representing a substantial 88.6% increase over nine years. This trend suggests a strong correlation between rising home values and sustained homeownership rates, despite the potential challenges of affordability for new buyers.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2020, interest rates remained historically low, ranging from 0.09% to 2.16%. This period coincided with a slight increase in homeownership rates from 60% to 63%, likely due to more affordable financing options. However, as interest rates began to rise sharply from 0.08% in 2021 to 1.68% in 2022, we observed a slight dip in homeownership to 62%, indicating the potential impact of higher borrowing costs on homebuying decisions.
Renter percentages in zip code 28605 have shown a minor fluctuation, decreasing from 40% in 2013 to 38% in 2022. Interestingly, average rent prices have not followed a consistent trend. In 2013, the average rent was $936, which peaked at $1,187 in 2016 before declining to $951 in 2022. This represents a modest overall increase of 1.6% over the nine-year period. The population growth from 4,374 in 2013 to 4,634 in 2022 may have contributed to the sustained demand for rentals, despite the slight decrease in renter percentage.
In 2023 and 2024, the real estate market in zip code 28605 continued its upward trajectory. The average home price reached $687,567 in 2023 and further increased to $712,697 in 2024, marking a 6.3% rise over two years. This growth occurred despite significantly higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, suggesting strong underlying demand in the local housing market.
Looking ahead, predictive models suggest a continued upward trend in both average home and rent prices for zip code 28605 over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $825,000 by 2029. Average rent prices are expected to rise more modestly, at about 2-3% per year, potentially reaching $1,100 by 2029.
In summary, zip code 28605 has demonstrated a robust and growing real estate market over the past decade. The area has maintained steady homeownership rates despite significant increases in average home prices, indicating strong local demand and potentially reflecting the desirability of Blowing Rock as a residential location. The rental market has shown resilience with stable occupancy rates and modest price growth. The continued rise in home values, even in the face of higher interest rates, suggests a positive outlook for the local real estate market in the coming years.
