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Buxton: Coastal Community's Housing Market Defies Trends Amid Rising Home Values
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
Buxton, located in North Carolina, is a coastal community known for its proximity to the Cape Hatteras Lighthouse. The city has experienced fluctuating trends in homeownership rates, average home prices, and average rent prices over the past decade. Generally, homeownership rates have increased in recent years, while average home prices have shown significant growth, particularly since 2020.
The relationship between homeownership rates and average home prices in Buxton reveals an interesting trend. From 2013 to 2019, homeownership rates declined from 73% to 64%, while average home prices increased moderately from $248,319 to $288,359. However, a notable shift occurred from 2020 onwards. Homeownership rates rose sharply from 70% in 2020 to 83% in 2022, coinciding with a substantial increase in average home prices from $298,198 in 2020 to $430,429 in 2022. This suggests that despite rising home prices, more residents were able to purchase homes, possibly due to other economic factors or local market conditions.
Federal interest rates appear to have influenced homeownership rates in Buxton. The period of low interest rates from 2013 to 2020 (ranging from 0.08% to 0.38%) coincided with fluctuating but generally lower homeownership rates. However, as interest rates began to rise in 2022 (1.68%), homeownership rates increased significantly to 83%. This contradicts the typical trend where lower interest rates encourage homeownership, suggesting that other local factors may have played a more significant role in Buxton's housing market.
Renter percentages and average rent prices in Buxton have shown varied trends. From 2013 to 2019, the percentage of renters increased from 27% to 36%, while average rent prices fluctuated, dropping from $550 in 2013 to $514 in 2019. However, a significant shift occurred in 2020, with average rent prices more than doubling to $1,130, while the renter percentage decreased to 30%. This trend continued into 2021, with average rent reaching $1,747 and the renter percentage further declining to 23%. By 2022, average rent slightly decreased to $1,328, with only 17% of the population renting. These changes could be attributed to shifts in local economic conditions or changes in the available rental inventory.
In 2023 and 2024, average home prices in Buxton continued to rise, reaching $448,326 in 2023 and $448,746 in 2024. This represents a slight slowdown in price growth compared to the rapid increases seen in previous years. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and home prices.
Looking ahead, predictive models suggest that average home prices in Buxton may continue to increase over the next five years, but at a more moderate pace. The rate of increase is likely to slow down due to the higher interest rates, potentially reaching around $500,000 by 2029. Average rent prices are projected to stabilize, potentially fluctuating between $1,300 and $1,500, as the market adjusts to recent rapid increases and changes in demand.
In summary, Buxton has experienced significant changes in its housing market, with a recent trend towards increased homeownership despite rising home prices. The relationship between interest rates and homeownership rates has been atypical, suggesting strong local market influences. The rental market has seen substantial price increases, coupled with a decreasing proportion of renters. These trends, combined with the current high interest rates, indicate a dynamic and evolving housing market in Buxton.
