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Henderson, NC: Rising Home Values Amidst Declining Ownership
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
Henderson, a city in North Carolina, has experienced significant shifts in its housing market over the past decade. Known for its historic downtown and proximity to Kerr Lake, Henderson has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends and local market conditions.
The homeownership rate in Henderson has shown a general decline from 2013 to 2022. In 2013, 55% of housing units were owner-occupied, but by 2022, this figure had dropped to 46%. This decrease in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in Henderson was $76,997, which rose dramatically to $156,009 by 2022, representing a 102.6% increase over this period.
The relationship between federal interest rates and homeownership rates in Henderson shows some correlation. As interest rates remained historically low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates initially held steady but then began to decline. This suggests that other factors, such as rising home prices, may have outweighed the potential benefits of low interest rates for potential homebuyers in Henderson.
Renter occupancy in Henderson has generally increased as homeownership declined. In 2013, 45% of housing units were renter-occupied, which increased to 54% by 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $717, which decreased to $674 by 2022, a 6% reduction. This decrease in average rent, despite an increase in the renter population, could be attributed to various factors such as an increase in affordable housing options or economic pressures affecting the local rental market.
Looking at more recent data, the average home price in Henderson continued to rise, reaching $163,762 in 2023 and $166,992 in 2024. This represents a 4.9% increase from 2022 to 2023 and a further 2% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and home price growth in Henderson.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Henderson will continue to rise, albeit at a more moderate pace. By 2029, average home prices could reach approximately $190,000 to $200,000, assuming a steady annual growth rate of 2-3%. For average rent prices, the forecast suggests a potential reversal of the recent downward trend, with prices possibly increasing to around $725-$750 per month by 2029, reflecting a modest annual growth of 1-2%.
In summary, Henderson has experienced a significant shift from homeownership to renter occupancy over the past decade, accompanied by a substantial increase in average home prices. Despite this, average rent prices have remained relatively stable. The recent spike in interest rates and continued home price appreciation may further impact homeownership rates in the coming years. These trends suggest a changing housing landscape in Henderson, with potential implications for affordability and housing market dynamics in the near future.
