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Benson, NC: Housing Market Dynamics and Homeownership Trends
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
Benson, located in North Carolina, is a small but growing community with a population of 11,794 as of 2022. This charming town, spanning just 2.8 square miles, has experienced interesting shifts in homeownership rates and housing prices over the past decade. The overall trend shows an increase in homeownership and rising average home prices, while average rent prices have fluctuated.
Homeownership in Benson has seen a notable upward trend, coinciding with a significant increase in average home prices. In 2013, the homeownership rate stood at 61%, with an average home price of $130,388. By 2022, the ownership rate had climbed to 65%, while the average home price rose dramatically to $295,518, representing a remarkable 126.6% increase over this period. This trend suggests a strong correlation between rising home values and increasing homeownership rates in the town.
The relationship between federal interest rates and homeownership rates in Benson appears to follow the general economic principle that lower interest rates encourage homeownership. For instance, when interest rates were historically low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates in Benson increased from 61% to 67%. This trend continued even as interest rates began to rise moderately, with homeownership reaching a peak of 68% in 2018 when the federal interest rate was 1.83%.
Renter percentages in Benson have shown an inverse relationship to homeownership rates, decreasing from 38% in 2013 to 35% in 2022. Interestingly, average rent prices have not followed a consistent trend during this period. In 2013, the average rent was $662, which increased to $776 by 2018, representing a 17.2% rise. However, by 2022, the average rent had decreased to $681, only slightly higher than the 2013 level. This fluctuation in rent prices, despite a decrease in the percentage of renters, could be attributed to various factors including changes in housing supply and overall economic conditions in the area.
As of 2024, the average home price in Benson has reached $314,881, showing continued growth from the 2022 figure. This represents a 6.6% increase from 2022 to 2024. The federal interest rate for 2024 stands at 5.33%, which is significantly higher than the rates seen in the previous decade. Despite this higher interest rate, the housing market in Benson appears to remain robust, with home prices continuing to appreciate.
Looking ahead, based on the historical data and current trends, we can forecast potential scenarios for the next five years. If the current trajectory continues, average home prices in Benson could potentially reach around $375,000 to $400,000 by 2029. However, this growth rate might slow down due to the higher interest rates. For rent prices, given their historical volatility, a conservative estimate might place average rents in the range of $700 to $800 by 2029, assuming modest growth and stable economic conditions.
In summary, Benson has experienced a significant increase in homeownership rates and average home prices over the past decade, despite fluctuations in federal interest rates. The rental market has shown more variability, with decreasing renter percentages but inconsistent changes in average rent prices. The town's real estate market has demonstrated resilience and growth, even in the face of recent interest rate hikes, suggesting a strong local economy and continued demand for housing in this small North Carolina community.
