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Frisco: Coastal Community Sees Surge in Home Values and Ownership Rates
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
Frisco, nestled in North Carolina, is a small coastal community that has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the local real estate dynamics. The homeownership rate in Frisco has fluctuated over the years, showing a general upward trend from 2019 to 2022. In 2019, the homeownership rate was 66%, which increased to 82% by 2022. This substantial rise in homeownership coincided with a significant increase in average home prices. From 2019 to 2022, average home prices rose from $318,267 to $481,590, representing a 51.3% increase over just three years.
The relationship between federal interest rates and homeownership rates in Frisco presents an interesting scenario. Despite the federal interest rate increasing from 0.08% in 2021 to 1.68% in 2022, the homeownership rate in Frisco actually increased from 75% to 82% during the same period. This suggests that local factors may have had a stronger influence on homeownership than national interest rates in this particular market.
Conversely, the percentage of renters in Frisco decreased from 33% in 2019 to 17% in 2022. This decline in the renter population coincided with a dramatic increase in average rent prices. In 2019, the average rent was $515, which more than doubled to $1,275 by 2022. This substantial increase in rent prices may have encouraged more residents to transition to homeownership, despite rising home prices.
Looking at the most recent data, average home prices in Frisco continued to rise, reaching $502,089 in 2023 and $514,784 in 2024. This represents a 4.3% increase from 2022 to 2023 and a further 2.5% increase from 2023 to 2024. Interestingly, these price increases occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and rent prices in Frisco. Based on the historical data and current market conditions, average home prices could potentially reach around $600,000 by 2029. Average rent prices, following their recent steep trajectory, might stabilize somewhat but could still approach $1,800 to $2,000 per month within the next five years.
In summary, Frisco has experienced a significant shift towards homeownership, with a concurrent rise in both home prices and rent prices. The resilience of the local housing market, even in the face of rising interest rates, suggests strong underlying demand for housing in this coastal community. As the area continues to evolve, it will be crucial to monitor how these trends impact the overall affordability and demographic composition of Frisco.
