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Average Home Values Soar in Zip Code 28704: Royal Pines's Shifting Housing Landscape
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
Royal Pines, located in zip code 28704 in North Carolina, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a general trend of decreasing homeownership rates, coupled with rising average home prices and fluctuating average rent prices.
The homeownership rate in Royal Pines has shown a gradual decline from 2013 to 2022. In 2013, 67% of housing units were owner-occupied, while by 2022, this figure had decreased to 60%. This downward trend in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $200,707, but by 2022, it had more than doubled to $418,353, representing a 108% increase over nine years.
The relationship between federal interest rates and homeownership rates in Royal Pines follows a well-established trend. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 65-68%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline, dropping to 60% by 2022. This inverse relationship suggests that higher interest rates may have contributed to making homeownership less affordable for some residents.
Renter percentages in Royal Pines have generally increased as homeownership rates declined. The percentage of renter-occupied housing units rose from 33% in 2013 to 40% in 2022. Interestingly, average rent prices have shown more volatility compared to home prices. In 2013, the average rent was $1,177, peaking at $1,268 in 2018, before decreasing to $1,101 in 2022. This fluctuation in rent prices, coupled with the increasing renter population, suggests a complex rental market influenced by various factors, including housing supply and demand dynamics.
In 2023 and 2024, the average home prices in Royal Pines continued to rise, reaching $431,018 in 2023 and $445,722 in 2024. This represents a 3% increase from 2022 to 2023 and a further 3.4% increase from 2023 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024, which may impact homeownership affordability in the area.
Looking ahead, predictive models suggest that average home prices in Royal Pines are likely to continue their upward trajectory over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices may also see moderate increases, driven by the growing renter population and overall housing demand in the area.
In summary, Royal Pines has experienced a shift towards a higher proportion of renters, accompanied by substantial increases in average home prices. The interplay between rising home prices, fluctuating rent prices, and increasing interest rates has shaped the local housing market dynamics. These trends indicate a changing landscape in housing affordability and ownership patterns in the 28704 zip code area.
