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Average Home Values and Ownership in Zip Code 28801: A Decade of Growth in Asheville's Urban Core
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 28801, located in Asheville, North Carolina, is a vibrant urban area covering 5.01 square miles. This zip code has experienced fluctuating homeownership rates and significant increases in both average home prices and average rent prices over the past decade, reflecting the dynamic nature of Asheville's real estate market.
The homeownership rate in zip code 28801 has remained relatively stable, oscillating between 36% and 39% from 2013 to 2022. Despite this stability, average home prices have shown a dramatic upward trend. In 2010, the average home price was $243,298, which more than doubled to $559,516 by 2022, representing a 130% increase over 12 years. This substantial rise in home values did not significantly impact homeownership rates, suggesting other factors may be influencing buyers' decisions.
Federal interest rates have played a role in homeownership trends. From 2010 to 2015, interest rates remained below 0.2%, coinciding with a period of stable homeownership rates around 37%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates showed slight increases, peaking at 39% in 2020 and 2021. This counterintuitive trend might indicate that other local economic factors were offsetting the potential negative impact of rising interest rates on homeownership.
Renter occupancy in zip code 28801 has remained the predominant housing situation, consistently accounting for 61% to 64% of occupied units between 2013 and 2022. Average rent prices have steadily increased during this period, rising from $729 in 2013 to $888 in 2022, a 21.8% increase. The population in the zip code has fluctuated, reaching a peak of 13,341 in 2021 before declining to 12,606 in 2022. Despite these population changes, the high renter occupancy rate has persisted, suggesting a strong rental market in the area.
In 2023 and 2024, the upward trend in average home prices continued, reaching $566,147 in 2023 and $582,637 in 2024. This represents a further 4.1% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade. These high interest rates could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 28801 will continue to rise over the next five years, potentially reaching around $700,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,000 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 28801 in Asheville has demonstrated resilience in its homeownership rates despite substantial increases in average home prices. The area maintains a strong rental market, with consistently high renter occupancy rates and steadily rising average rents. The recent sharp increase in interest rates, coupled with continuing growth in home values, may present challenges for potential homebuyers in the coming years. However, the persistent demand for both owned and rented properties in this zip code suggests a robust and desirable real estate market that is likely to continue evolving in response to economic factors and local dynamics.
