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Harrisburg, NC: A Decade of Rising Home Values and Shifting Ownership Patterns
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
Harrisburg, a vibrant town in North Carolina, has experienced significant growth and changes in its housing market over the past decade. Located in Cabarrus County, this suburban community has seen a steady increase in population, accompanied by evolving trends in homeownership and housing prices.
The homeownership rate in Harrisburg has shown a gradual decline from 2013 to 2022. In 2013, 86% of residents owned their homes, but by 2022, this figure had decreased to 81%. Despite this slight decline, Harrisburg maintains a high rate of homeownership compared to national averages. Concurrent with this trend, average home prices in Harrisburg have seen substantial growth. In 2013, the average home price was $225,443, which rose dramatically to $474,398 by 2022, representing a 110% increase over this period.
Federal interest rates have played a significant role in shaping homeownership trends in Harrisburg. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1% to 0.4%. During this period, homeownership rates in Harrisburg remained stable at around 85-86%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, a slight decline in homeownership was observed, dropping to 81% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Harrisburg has gradually increased from 12% in 2013 to 19% in 2022. This shift coincides with a rise in average rent prices. In 2013, the average rent was $1,401, which increased to $1,569 by 2022, representing a 12% increase. The growth in the renter population and rent prices can be attributed to the town's expanding population, which grew from 25,018 in 2013 to 34,421 in 2022, a 37.6% increase. This population growth has likely increased demand for rental properties, contributing to higher rent prices.
As of 2024, the average home price in Harrisburg has reached $505,545, continuing the upward trend observed in previous years. This represents a 6.5% increase from the 2022 average price of $474,398. The federal interest rate in 2024 stands at 5.33%, significantly higher than the 1.68% rate in 2022. This increase in interest rates may impact future homeownership trends and housing affordability in Harrisburg.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in Harrisburg will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $600,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $1,800 per month by 2029, driven by population growth and increased housing demand.
In summary, Harrisburg has experienced a slight decrease in homeownership rates coupled with a significant increase in average home prices over the past decade. The rental market has grown, with both the percentage of renters and average rent prices increasing. These trends reflect the town's rapid population growth and changing economic conditions. As Harrisburg continues to evolve, balancing housing affordability with growth will be crucial for maintaining its appeal as a residential community.
