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Boone's Housing Market: Rising Home Values and Ownership Amidst Mountain Charm
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
Boone, located in North Carolina, is a vibrant community known for its picturesque mountain setting and as the home of Appalachian State University. This college town has experienced significant changes in its housing market over the past decade, with notable shifts in homeownership rates, average home prices, and average rent prices.
From 2013 to 2022, Boone saw a gradual increase in homeownership rates, rising from 36% to 42%. This trend coincided with a substantial rise in average home prices, which grew from $233,027 in 2013 to $438,419 in 2022, representing an impressive 88% increase over the period. The relationship between homeownership rates and average home prices suggests that despite the rising costs, more residents were able to enter the housing market.
The federal interest rates played a significant role in shaping homeownership trends in Boone. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This favorable financing environment likely contributed to the increase in homeownership from 36% in 2013 to 41% in 2016. As interest rates began to rise more steadily from 2017 onwards, reaching 1.68% in 2022, the growth in homeownership rates slowed, stabilizing around 42-43% from 2018 to 2022.
Renter percentages in Boone showed a corresponding decline, dropping from 63% in 2013 to 58% in 2022. Interestingly, average rent prices also experienced a downward trend during this period, decreasing from $966 in 2013 to $933 in 2022. This decline in average rent prices, coupled with the growing student population at Appalachian State University, may have helped maintain a significant renter population despite the increase in homeownership rates.
In 2023 and 2024, Boone's housing market continued to evolve. The average home price reached $459,633 in 2023 and further increased to $478,451 in 2024, indicating sustained growth in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability for some residents.
Looking ahead, predictive models suggest that average home prices in Boone will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices may stabilize or see modest increases as the market adjusts to changing economic conditions and housing demand.
In summary, Boone has experienced a notable increase in homeownership rates and average home prices over the past decade, while average rent prices have slightly decreased. The interplay between federal interest rates, the local economy, and the presence of a major university has shaped these trends. As the housing market continues to evolve, Boone remains an attractive location for both homeowners and renters, with its unique blend of mountain charm and academic atmosphere.
