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Etowah: Rising Home Values Amidst Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Etowah, a small community in North Carolina's Blue Ridge Mountains, has experienced significant changes in its housing market over the past decade. The town has seen a gradual decline in homeownership rates, coupled with a substantial increase in average home prices. From 2013 to 2022, the homeownership rate decreased from 91% to 85%, while average home prices rose dramatically from $167,202 to $370,972, marking a 122% increase.
The relationship between federal interest rates and homeownership rates in Etowah follows an expected pattern. As interest rates remained low from 2013 to 2016, ranging from 0.09% to 0.40%, the homeownership rate only slightly decreased from 91% to 86%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate continued its gradual decline to 85% in 2022.
The percentage of renters in Etowah has increased from 9% in 2013 to 15% in 2022. This trend has been accompanied by fluctuations in average rent prices, which peaked at $1,103 in 2021 before dropping to $717 in 2022. The town's population growth from 7,095 in 2013 to 7,638 in 2022 may have contributed to the increased demand for rental properties.
Recent data shows that the average home price in Etowah continued to rise, reaching $391,843 in 2023 and $408,704 in 2024, a 10% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates.
Forecasts for the next five years suggest that average home prices in Etowah will continue to increase, albeit potentially at a slower rate due to higher interest rates. By 2029, average home prices could reach approximately $500,000 to $550,000. Average rent prices, which have shown volatility, are expected to stabilize and gradually increase, potentially reaching $1,200 to $1,400 per month by 2029.
In conclusion, Etowah has experienced a gradual shift from homeownership to renting over the past decade, accompanied by significant increases in average home prices. The recent sharp rise in interest rates may further impact this trend, potentially slowing down home price growth and affecting affordability for potential buyers. The rental market is expected to remain strong, with a continued increase in demand and gradual rise in average rent prices.
