Loading Content...
Hillsborough, NC: A Decade of Rising Home Values and Stable Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hillsborough, a charming town in North Carolina, boasts a rich history and a growing population. Located in Orange County, this vibrant community has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. The town has maintained a strong preference for homeownership, with rates consistently above 65%, while average home prices and average rent have shown an upward trend.
The homeownership rate in Hillsborough has remained relatively stable, fluctuating between 65% and 73% from 2013 to 2022. In 2013, the homeownership rate was 65%, increasing to a peak of 73% in 2018, before settling at 70% in 2022. During this period, average home prices in Hillsborough demonstrated a steady upward trend. In 2013, the average home price was $213,093, which increased to $426,553 by 2022, representing a substantial 100% growth over nine years. This trend suggests a strong correlation between rising home values and sustained homeownership rates in the area.
Federal interest rates have played a significant role in homeownership trends in Hillsborough. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.40%, coinciding with a period of stable homeownership rates around 70%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates showed slight fluctuations but remained robust. The dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with a steady homeownership rate of 70%, likely encouraging home purchases due to more affordable financing options.
Renter percentages in Hillsborough have inversely mirrored homeownership rates, ranging from 27% to 35% between 2013 and 2022. The average rent prices have shown an overall increasing trend, albeit with some fluctuations. In 2013, the average rent was $935, rising to $1,164 in 2021, before slightly decreasing to $1,043 in 2022. This represents an overall increase of about 11.5% in average rent over the nine-year period. The town's growing population, which increased from 14,299 in 2013 to 17,874 in 2022, may have contributed to the upward pressure on rent prices.
In 2023 and 2024, Hillsborough experienced further increases in average home prices. The average home price rose to $444,867 in 2023 and $464,505 in 2024, continuing the upward trend observed in previous years. Concurrently, federal interest rates reached 5.02% in 2023 and 5.33% in 2024, marking a significant increase from the near-zero rates of the early 2020s.
Looking ahead, predictive models suggest that average home prices in Hillsborough will continue to rise over the next five years, potentially reaching around $550,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,300 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Hillsborough has maintained a strong homeownership culture despite rising home prices, with federal interest rates playing a significant role in housing market dynamics. The town has experienced substantial growth in both population and property values, with average home prices more than doubling over the past decade. Rent prices have also shown an upward trend, albeit at a more moderate pace. As Hillsborough continues to grow, these trends in homeownership, home prices, and rent are likely to shape the town's housing landscape in the coming years.
