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Gastonia's Rising Home Values and Ownership: A Decade of Growth in North Carolina's Textile City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Gastonia, a vibrant city in North Carolina, has experienced significant changes in its housing market over the past decade. Known for its rich textile history and proximity to Charlotte, Gastonia has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
The homeownership rate in Gastonia has shown some variability between 2013 and 2022. In 2013, the homeownership rate was 52%, which increased to 57% in 2014. However, it fluctuated in subsequent years, reaching 58% in 2022, the highest in the observed period. Concurrently, average home prices in Gastonia have experienced a substantial increase. In 2013, the average home price was $99,994, which steadily rose to $262,996 by 2022, representing a remarkable 163% increase over this period. This trend suggests a strong correlation between rising home values and homeownership rates, potentially indicating growing confidence in the local real estate market.
Federal interest rates have played a significant role in shaping homeownership trends in Gastonia. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates in Gastonia fluctuated between 52% and 57%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates remained relatively stable, ranging from 52% to 55%. The sharp drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) coincided with a stabilization of homeownership at 54%. Interestingly, despite the interest rate increase to 1.68% in 2022, Gastonia saw its highest homeownership rate of 58% that year, possibly due to other local economic factors or delayed effects of the previous low-rate environment.
Renter percentages in Gastonia have generally mirrored the inverse of homeownership rates, ranging from a high of 48% in 2013 and 2017 to a low of 42% in 2022. Average rent prices have shown a consistent upward trend, increasing from $735 in 2013 to $1,058 in 2022, a 44% rise. This increase in rent prices occurred alongside population growth, with Gastonia's population expanding from 73,205 in 2013 to 82,666 in 2022. The rising population likely contributed to increased demand for rental properties, supporting the upward trend in rent prices despite fluctuations in the renter percentage.
In 2023 and 2024, Gastonia's housing market continued its upward trajectory. The average home price reached $269,420 in 2023 and further increased to $276,712 in 2024, showing a steady appreciation. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from previous years.
Looking ahead, based on the observed trends, it's projected that average home prices in Gastonia will continue to rise over the next five years, potentially reaching around $325,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,300 per month in the same timeframe. These projections assume continued population growth and economic stability in the region.
In summary, Gastonia's housing market has demonstrated strong growth in both home values and rent prices over the past decade. The city has maintained a relatively balanced mix of homeowners and renters, with a slight trend towards increased homeownership in recent years. The resilience of the housing market, even in the face of rising interest rates, suggests a robust local economy and continued demand for housing in this growing North Carolina city.
