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Average Home Values and Ownership in Zip Code 28759: Mills River's Mountain-View 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
Mills River, located in zip code 28759 in North Carolina, has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices to provide insights into the local real estate landscape. The homeownership rate in Mills River has shown some fluctuation but has remained relatively high, ranging from 81% to 87% between 2013 and 2022. In 2013, the homeownership rate was 87%, and it maintained this level in 2022. During this period, average home prices in the area saw a substantial increase. In 2013, the average home price was $235,984, and by 2022, it had risen to $505,269, representing a 114% increase over nine years. This trend suggests that despite rising home prices, Mills River residents have maintained a strong preference for homeownership.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.4%, which likely contributed to the sustained high homeownership rates during this period. As interest rates began to rise in 2017, reaching 1.83% in 2018, there was a slight dip in homeownership to 81%. However, the homeownership rate rebounded to 87% in 2022, even as interest rates increased to 1.68%, demonstrating the area's resilience in maintaining high homeownership levels.
Renter percentages in Mills River have fluctuated inversely to homeownership rates, ranging from 13% to 19% between 2013 and 2022. The average rent prices have shown volatility during this period. In 2013, the average rent was $1,005, and it peaked at $1,275 in 2016 before declining to $982 in 2022. This represents a slight overall decrease of 2.3% in average rent prices from 2013 to 2022. The population of Mills River increased from 6,460 in 2013 to 6,558 in 2022, a modest growth of 1.5%, which may have contributed to the relatively stable rental market.
In 2023 and 2024, the housing market in Mills River continued to evolve. The average home price in 2023 reached $524,850, a 3.9% increase from 2022. In 2024, the average home price further increased to $542,691, representing a 3.4% growth from 2023. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Looking ahead, predictive models suggest that average home prices in Mills River are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices may stabilize or see modest increases as the rental market adjusts to changes in homeownership accessibility. The interplay between interest rates, home prices, and local economic factors will be crucial in shaping these trends.
In summary, Mills River has maintained a strong homeownership culture despite rising home prices. The area has shown resilience in its housing market, with homeownership rates remaining high even as average home prices more than doubled over the past decade. The rental market has experienced some fluctuations but has remained relatively stable. As interest rates continue to rise, it will be important to monitor how this affects homeownership rates and housing affordability in the coming years.
