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Average Home Values and Ownership in Zip Code 28657: Newland's Resilient Housing Market
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 28657, located in Newland, North Carolina, presents an interesting case study of homeownership and rental trends over the past decade. This rural area has experienced fluctuations in its housing market, with notable shifts in ownership percentages and average home prices.
The homeownership rate in zip code 28657 has shown resilience, maintaining a relatively high percentage throughout the observed period. In 2013, the area boasted an 81% homeownership rate. While there was a slight decline to 74% in 2018, the trend reversed, reaching 80% by 2022. This strong homeownership base suggests a stable community with a preference for long-term residency.
Average home prices in the area have seen significant growth, particularly in recent years. From 2016 to 2022, average home prices increased from $136,789 to $236,087, representing a substantial 72.6% rise over six years. This appreciation in home values could be attributed to various factors, including improved local amenities, economic development, or increased demand for rural properties.
The relationship between federal interest rates and homeownership rates in zip code 28657 shows some correlation. As interest rates remained low from 2013 to 2016, hovering around 0.1% to 0.4%, homeownership rates stayed above 78%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, there was a slight dip in homeownership to 74%. Interestingly, despite further increases in interest rates, homeownership rebounded to 80% by 2022, suggesting other local factors may have a stronger influence on homeownership in this area.
Renter percentages in zip code 28657 have fluctuated inversely to homeownership rates, ranging from 19% in 2013 to a peak of 26% in 2018, before settling at 20% in 2022. Average rent prices have shown volatility, rising from $695 in 2013 to a high of $836 in 2017, then experiencing a decline to $679 in 2021, before increasing again to $795 in 2022. This volatility in rent prices could be influenced by changes in local economic conditions, housing supply, or shifts in population demographics.
Looking at the most recent data, average home prices in zip code 28657 continued their upward trajectory, reaching $250,610 in 2023 and further increasing to $276,657 in 2024. This represents a 17.2% increase over two years, indicating a robust housing market in the area. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homebuying activity.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in average home prices for zip code 28657, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $320,000 by 2029. Rent prices are expected to follow a similar upward trend, potentially reaching an average of around $950 per month by 2029, assuming consistent economic conditions and housing demand in the area.
In summary, zip code 28657 demonstrates a strong preference for homeownership, with resilient ownership rates despite fluctuations in the housing market. The area has experienced significant appreciation in home values, particularly in recent years, while rent prices have shown more volatility. The coming years may see continued growth in both home prices and rents, albeit potentially moderated by higher interest rates and economic factors.
