Loading Content...
Burlington's Soaring Home Values: A Decade of Growth in North Carolina's Textile City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Burlington, North Carolina, a city with a rich textile heritage in Alamance County, has experienced significant changes in its housing market over the past decade. From 2013 to 2022, the city saw fluctuations in homeownership rates, substantial increases in average home prices, and moderate changes in average rent prices, reflecting the dynamic nature of its housing landscape.
The homeownership rate in Burlington has shown interesting variations from 2013 to 2022. Starting at 60% in 2013, it declined to 56% by 2016, before gradually increasing to 61% in 2022. This trend coincided with notable changes in average home prices. In 2013, the average home price was $93,542, which steadily increased to $213,702 by 2022, representing a substantial 128% increase over this period. The most significant jump occurred between 2020 and 2022, with average home prices rising from $148,858 to $213,702, a 43.6% increase in just two years.
Federal interest rates have played a crucial role in shaping homeownership trends in Burlington. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates paradoxically declined from 60% to 56%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 57%. Interestingly, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a rebound in homeownership rates to 60% by 2021, likely due to increased affordability of mortgages.
Renter percentages in Burlington have inversely mirrored homeownership rates, ranging from 39% to 44% between 2013 and 2022. The average rent prices have shown moderate fluctuations during this period. In 2013, the average rent was $877, which slightly decreased to $857 in 2014 and 2015. It then rose to $891 in 2016 before stabilizing around $870-$876 from 2017 to 2019. A noticeable increase occurred in 2020 and 2021, with average rent reaching $983, before decreasing to $887 in 2022. These rent trends have occurred against a backdrop of steady population growth, from 59,733 in 2013 to 67,388 in 2022, indicating a growing demand for housing in the city.
In 2023 and 2024, Burlington's housing market continued its upward trajectory. The average home price in 2023 reached $231,988, a further 8.6% increase from 2022. By 2024, it climbed to $241,059, representing a 3.9% year-over-year growth. This continued appreciation occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that Burlington's housing market will likely continue its growth trajectory, albeit at a potentially moderated pace. Average home prices are projected to increase by approximately 3-5% annually over the next five years, potentially reaching around $280,000 by 2029. Average rent prices are expected to follow a similar trend, with annual increases of 2-4%, potentially reaching $1,050-$1,100 by 2029.
In summary, Burlington has experienced a resurgence in homeownership rates since 2016, coupled with significant appreciation in average home prices. The rental market has shown more stability in terms of occupancy rates, with moderate fluctuations in average rent prices. The city's continued population growth and the recent sharp increases in both home prices and interest rates suggest a dynamic and potentially challenging housing market in the coming years, with affordability likely to be a key concern for both buyers and renters.
