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Fairmont, NC: Rising Home Values and 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
Fairmont, a town in North Carolina, has experienced notable shifts in its housing market over the past decade. This small community has seen changes in homeownership rates, average home prices, and average rent prices that reflect broader economic trends and local dynamics.
The homeownership rate in Fairmont has shown a declining trend from 2013 to 2022. In 2013, 63% of housing units were owner-occupied. This percentage remained relatively stable until 2017, with a slight increase to 65%. However, from 2018 onwards, there was a consistent decrease in homeownership. By 2022, the rate had dropped to 52%, representing a significant 11 percentage point decline over a decade.
Interestingly, this decline in homeownership coincides with a substantial increase in average home prices. In 2019, the average home price in Fairmont was $54,233. By 2022, this figure had risen to $81,919, marking a 51% increase in just three years. This rapid appreciation in home values may have contributed to the declining homeownership rate, as higher prices potentially priced out some prospective buyers.
The relationship between federal interest rates and homeownership rates in Fairmont shows some correlation. From 2013 to 2015, when interest rates were historically low (below 0.15%), homeownership rates remained stable around 63%. As interest rates began to rise gradually from 2016 to 2019 (reaching 2.16% in 2019), homeownership rates started to decline. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging home purchases.
As homeownership declined, the percentage of renters in Fairmont increased correspondingly. In 2013, 37% of housing units were renter-occupied. This figure rose to 48% by 2022, representing an 11 percentage point increase. Alongside this trend, average rent prices saw a significant upward trajectory. In 2013, the average monthly rent was $388. By 2022, it had climbed to $693, marking a 79% increase over nine years. This sharp rise in rent prices outpaced the growth in home values during the same period.
In 2023 and 2024, Fairmont's housing market continued to evolve. The average home price reached $88,105 in 2023 and further increased to $91,320 in 2024, showing a continued upward trend. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability.
Looking ahead, predictive models suggest that average home prices in Fairmont may continue to rise over the next five years, potentially reaching around $110,000 by 2029 if current trends persist. Average rent prices are also expected to increase, potentially surpassing $800 per month within the same timeframe.
In summary, Fairmont has experienced a notable shift from homeownership to renting over the past decade, accompanied by substantial increases in both home values and rent prices. The interplay between rising property values, increasing rents, and fluctuating interest rates has reshaped the town's housing landscape. These trends suggest a changing economic environment in Fairmont, with potential implications for housing affordability and community demographics in the coming years.
