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Average Home Values and Ownership in Zip Code 28682: A Decade of Growth in Lake Norman of Catawba
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
In zip code 28682, Lake Norman of Catawba, North Carolina, a dynamic real estate market is characterized by fluctuating homeownership rates and evolving property values. This lakeside community has experienced significant changes in its housing landscape over the past decade, with notable shifts in both ownership patterns and property prices. The homeownership rate in this zip code has shown a general upward trend, particularly in recent years. In 2013, 81% of residents owned their homes, and by 2022, this figure had increased to 92%, representing a substantial 11 percentage point increase. This rise in homeownership coincided with a significant appreciation in average home prices. The average home price in 2013 was $291,558, and by 2022, it had more than doubled to $598,678, marking a 105% increase over this period.
The relationship between federal interest rates and homeownership rates in this area appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 76-77%. However, as interest rates began to rise more significantly from 2017 onwards, we paradoxically saw an increase in homeownership rates, reaching 92% by 2022 when the interest rate was 1.68%. This suggests that other local factors may have been influencing homeownership decisions in this specific market.
Regarding rental trends, the percentage of renters in zip code 28682 has fluctuated over the years, generally moving inversely to homeownership rates. In 2013, 19% of residents were renters, and this peaked at 27% in 2017 before declining to 8% in 2022. Average rent prices have shown significant volatility. From a high of $1,558 in 2013, average rents dropped dramatically to $642 in 2015, then gradually increased to $1,006 in 2022. This volatility in rent prices doesn't seem to correlate directly with the renter population, suggesting that other factors such as local economic conditions or housing supply might be influencing rental markets in this area.
Looking at the most recent data, the average home price in zip code 28682 continued to rise, reaching $612,618 in 2023 and further increasing to $636,375 in 2024. This represents a 2.3% increase from 2022 to 2023 and a 3.9% increase from 2023 to 2024. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest levels seen since 2007.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 28682 will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. We project that by 2029, average home prices could reach approximately $750,000 to $800,000, assuming a moderate annual growth rate of 3-5%. For rent prices, given their historical volatility, predictions are less certain. However, if the trend of increasing homeownership continues, we might see a stabilization or slight decrease in average rents, potentially settling around $950 to $1,100 per month by 2029.
In summary, zip code 28682 has experienced a significant increase in homeownership rates and average home prices over the past decade, with particularly strong growth in recent years despite rising interest rates. The rental market has shown more volatility, with fluctuating renter populations and average rent prices. The coming years are likely to see continued appreciation in home values, albeit potentially at a more moderate pace, while the rental market may stabilize as the area continues to favor homeownership.
