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Average Home Values and Ownership in Zip Code 28681: A Decade of Growth in Bethlehem, North Carolina
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 28681, located in Bethlehem, North Carolina, is a residential area spanning 171.4 square miles. This zip code has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 28681 has shown a gradual increase in recent years, rising from 75% in 2016 to 80% in 2022. This upward trend in homeownership coincides with a significant increase in average home prices. In 2016, the average home price was $130,411, which steadily climbed to $220,960 by 2022, representing a substantial 69.4% increase over six years. This correlation suggests that despite rising home values, more residents in the area have been able to enter the housing market as owners.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 28681. The period from 2016 to 2020 saw relatively low interest rates, ranging from 0.4% to 2.16%, which likely contributed to the increase in homeownership from 75% to 80% during this time. Lower interest rates typically make mortgages more affordable, encouraging more people to buy homes. The slight dip in homeownership to 76% in 2017 and 2018 may have been influenced by the gradual increase in interest rates during those years, reaching 1.83% in 2018.
The rental market in zip code 28681 has shown interesting trends in relation to the homeownership rates. As homeownership increased, the percentage of renters naturally decreased, dropping from 24% in 2016 to 20% in 2022. Despite this decrease in the renter population, average rent prices have generally increased. In 2016, the average rent was $591, which rose to $662 by 2022, marking a 12% increase. This trend suggests that even with fewer renters, demand for rental properties remained strong enough to support higher rent prices.
Looking at the most recent data, the average home price in zip code 28681 reached $236,043 in 2023 and further increased to $239,125 in 2024. This continued upward trajectory in home values occurs alongside a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and market dynamics in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 28681 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $275,000 to $290,000, assuming a moderate annual growth rate of 3-4%. For rent prices, we project a continued upward trend, with average rents potentially reaching $750 to $800 per month by 2029, based on historical increases and local market conditions.
In summary, zip code 28681 has demonstrated a strong trend towards homeownership, with increasing average home prices and a growing percentage of owner-occupied properties. The rental market, while shrinking in terms of percentage, has seen rising average rents. These trends, coupled with fluctuating interest rates, paint a picture of a dynamic housing market in Bethlehem, North Carolina, with potential for continued growth in both home values and rental prices in the coming years.
