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Bennett, NC: Rising Home Values Amidst Fluctuating Ownership Rates
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
Bennett, North Carolina, is a small community with a unique demographic profile. Located in Chatham County, this rural area has experienced significant changes in population, homeownership rates, and housing prices over the past decade. The ownership percentage has fluctuated, while average home prices have shown a general upward trend, and average rent prices have varied considerably.
The homeownership rate in Bennett has seen notable changes from 2013 to 2022. In 2013, the ownership rate was 89%, which remained relatively stable until 2016 when it dropped to 86%. The rate continued to decline, reaching 81% in 2018 and 2021. However, there was a significant increase in 2022, with the ownership rate jumping to 91%. During this period, average home prices steadily increased from $142,179 in 2013 to $266,676 in 2022, representing an 87.6% increase over nine years.
Federal interest rates have played a role in homeownership trends in Bennett. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained high, above 86%. As interest rates began to rise in 2017 (1.00%) and 2018 (1.83%), homeownership rates declined to 83% and 81% respectively. The sharp increase in homeownership to 91% in 2022 occurred despite a rise in interest rates to 1.68%, possibly due to other local factors influencing the housing market.
Renter percentages in Bennett have generally mirrored the inverse of homeownership rates. In 2013, the renter percentage was 11%, which increased to 19% by 2018 and 2021. However, it dropped significantly to 9% in 2022. Average rent prices have fluctuated over the years, starting at $1,007 in 2013, dropping to $852 in 2014 and 2015, then rising to $1,124 in 2017. After some fluctuations, the average rent was $1,073 in 2022. These changes in rent prices don't show a clear correlation with the renter percentage, suggesting other factors may be influencing rental market dynamics.
In 2023, the average home price in Bennett reached $271,563, a 1.8% increase from 2022. The federal interest rate in 2023 was 5.02%, a significant jump from the previous year. Moving into 2024, the average home price has further increased to $279,535, representing a 2.9% rise from 2023. The federal interest rate for 2024 stands at 5.33%, continuing the upward trend.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. Average home prices in Bennett have shown a consistent upward trend, with an average annual growth rate of about 7.5% from 2013 to 2022. If this trend continues, we could see average home prices reaching approximately $400,000 by 2029. However, the rate of increase may slow down due to higher interest rates. For rent prices, the trend has been more volatile, but assuming a modest average annual increase of 2%, we might expect average rents to reach around $1,185 by 2029.
In summary, Bennett has experienced significant changes in its housing market over the past decade. The most notable trends include the overall increase in average home prices, the recent surge in homeownership rates, and the fluctuating nature of rent prices. The interplay between federal interest rates, homeownership rates, and housing prices demonstrates the complex dynamics at work in this small North Carolina community.
