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High Point's Rising Home Values and Ownership Rates: Furniture City's Housing Market Trends
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
High Point, North Carolina, a city renowned for its furniture industry and the biannual High Point Market, has experienced significant changes in its housing market over the past decade. This analysis focuses on the trends in homeownership rates, average home prices, and rental costs in this vibrant city. High Point's housing market has shown a general trend of increasing average home prices and rent costs, accompanied by fluctuating homeownership rates. From 2013 to 2022, the city witnessed a notable rise in both homeownership rates and average home prices. In 2013, the homeownership rate stood at 53% with an average home price of $111,512. By 2022, the homeownership rate had increased to 59%, while the average home price surged to $219,323. This trend suggests that despite rising home prices, more residents were able to transition into homeownership. Federal interest rates have played a crucial role in shaping homeownership trends in High Point. During the period of extremely low interest rates (below 0.5%) from 2013 to 2016, homeownership rates fluctuated between 51% and 55%. Interestingly, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased, reaching 56% in 2019. This counterintuitive trend might be attributed to local economic factors or a rush to purchase homes before rates increased further.
The rental market in High Point has shown its own distinct patterns. In 2013, 47% of residents were renters, with an average rent of $739. As the renter percentage decreased to 43% by 2017, average rent increased to $840. By 2022, the renter percentage had further decreased to 41%, while average rent had climbed significantly to $1,116. This trend suggests that even as fewer residents opted for renting, those who did rent faced higher costs. In recent years, High Point's housing market has continued its upward trajectory. The average home price reached $232,816 in 2023 and further increased to $240,429 in 2024. Concurrently, federal interest rates rose substantially, hitting 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the city. Looking ahead, predictive models suggest that average home prices in High Point will continue to rise over the next five years, potentially reaching around $275,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,300 per month within the same timeframe. These projections are based on the consistent upward trends observed in both metrics over the past decade. In conclusion, High Point has experienced a notable increase in homeownership rates despite rising home prices, suggesting a robust local economy and strong desire for homeownership among residents. The rental market has seen fewer renters but higher average rents, indicating a potential shortage of affordable rental properties. The recent sharp increase in interest rates, coupled with consistently rising home prices, may present challenges for future homebuyers in High Point.
