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Cardinal Lake: Rising Home Values and Ownership Rates in Durham's Dynamic Neighborhood
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
Cardinal Lake, a neighborhood in Durham, North Carolina, has experienced significant changes in its housing market over the past decade. This area is characterized by consistently high homeownership rates and substantial growth in average home prices. From 2013 to 2022, the homeownership rate in Cardinal Lake increased from 83% to 87%, demonstrating a strong preference for owner-occupied housing. During this same period, average home prices in Cardinal Lake saw remarkable growth. In 2013, the average home price was $156,412. By 2022, this figure had more than doubled to $384,728, representing a 146% increase over nine years. This significant appreciation in home values occurred despite fluctuations in federal interest rates and other economic factors. The relationship between federal interest rates and homeownership rates in Cardinal Lake generally aligns with the expected trend of lower interest rates encouraging homeownership. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.40%), the homeownership rate in Cardinal Lake increased from 83% to 87%. However, the high homeownership rate remained stable even as interest rates began to rise from 2017 onwards, suggesting that other factors may also influence local homeownership trends.
Renter percentages in Cardinal Lake have remained relatively low, fluctuating between 13% and 21% from 2013 to 2022. Interestingly, average rent prices have shown some volatility during this period. In 2013, the average rent was $1,479, which peaked at $1,529 in 2015 before declining to $1,331 in 2022. This represents a 10% decrease in average rent prices over nine years, despite the significant increase in average home prices during the same period.
As of 2024, the average home price in Cardinal Lake stands at $392,304, showing a slight increase from the 2023 figure of $385,688. This continued growth in home prices occurs against the backdrop of relatively high federal interest rates, which reached 5.33% in 2024, up from 5.02% in 2023. These figures indicate a resilient housing market in Cardinal Lake, maintaining value despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Cardinal Lake may continue to rise over the next five years, albeit at a more moderate pace compared to the rapid growth seen in the past decade. Average rent prices, which have shown some volatility, may stabilize or see modest increases as the neighborhood continues to attract residents.
In summary, Cardinal Lake has demonstrated a strong preference for homeownership, with owner-occupied housing consistently above 80% despite significant increases in average home prices. The neighborhood has bucked the trend of rising rent prices seen in many urban areas, with average rents actually decreasing over the past decade. As Cardinal Lake continues to evolve, it remains an attractive area for those seeking to own homes in Durham, North Carolina.
