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Dover, NC: Rising Home Values Amidst Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
United States Census Bureau: American Community Survey Data (ACS)
Zillow: Zillow Home Value Index (ZHVI)
Dover, located in North Carolina, has experienced notable shifts in its housing market dynamics over the past decade. This small community has seen fluctuations in its population, homeownership rates, and housing prices, reflecting broader economic trends and local factors.
The homeownership rate in Dover has shown a general decline from 2013 to 2022. In 2013, the percentage of owner-occupied housing units stood at 81%. However, by 2022, this figure had decreased to 67%. This downward trend in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $69,321, which rose steadily to reach $127,123 by 2022, representing an impressive 83% increase over this period.
Federal interest rates play a crucial role in shaping homeownership trends. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, Dover's homeownership rate remained relatively stable, fluctuating between 71% and 73%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, the homeownership rate in Dover experienced a more pronounced decline, dropping to 67% by 2018.
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The renter population in Dover has seen an upward trend, with the percentage of renter-occupied housing units increasing from 19% in 2013 to 33% in 2022. This rise in renters corresponded with fluctuations in average rent prices. In 2013, the average rent was $808, which decreased to $656 by 2019 before rising again to $837 in 2022. The population of Dover also experienced changes during this period, declining from 832 in 2013 to 651 in 2019, before rebounding to 967 in 2022. This population growth in recent years may have contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023, the average home price in Dover reached $130,112, continuing the upward trend observed in previous years. By 2024, this figure further increased to $133,537, indicating sustained growth in the housing market. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, levels not seen since the mid-2000s.
Looking ahead, predictive models suggest that average home prices in Dover are likely to continue their upward trajectory over the next five years. Based on historical trends and current market conditions, we can expect average home prices to potentially reach around $150,000 to $160,000 by 2029. Rent prices are also projected to increase, potentially reaching an average of $900 to $950 per month within the same timeframe.
In summary, Dover has experienced a gradual shift from a predominantly owner-occupied housing market to one with a growing renter population. This transition has occurred alongside substantial increases in average home prices and fluctuations in rent prices. The interplay between federal interest rates, population changes, and housing market dynamics has shaped these trends, with recent years showing accelerated growth in both home prices and interest rates. As the community continues to evolve, these housing market trends will likely play a crucial role in shaping Dover's future development and demographic composition.
