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Home Values and Ownership in Zip Code 27012: Clemmons's Resilient Housing Market
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
Zip code 27012, located in Clemmons, North Carolina, has experienced notable shifts in its housing market over the past decade. This area has maintained a consistently high rate of homeownership while navigating fluctuations in average home prices and average rent costs. The interplay between these factors offers insights into the local real estate dynamics and community composition.
The ownership percentage in zip code 27012 has remained relatively stable, hovering around 82% from 2013 to 2022. However, there have been slight fluctuations, with the highest rate of 84% observed in 2017 and the lowest of 80% in 2022. Interestingly, these changes in homeownership rates coincide with trends in average home prices. For instance, as the average home price increased from $231,546 in 2017 to $352,873 in 2022, a 52.4% jump, the homeownership rate decreased slightly. This suggests that rising home prices may have made it more challenging for some residents to enter the housing market.
Federal interest rates have played a role in shaping homeownership trends in the area. For example, when interest rates were at historic lows of 0.08% in 2021, the homeownership rate stood at 82%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates rose sharply to 1.68% in 2022, we saw a slight dip in homeownership to 80%, indicating that higher borrowing costs may have impacted some potential buyers' ability to purchase homes.
The renter population in zip code 27012 has shown a slight upward trend, increasing from 17% in 2013 to 20% in 2022. This increase in renters corresponds with a significant rise in average rent prices. In 2013, the average rent was $862, which climbed to $1,220 by 2022, representing a 41.5% increase. The population growth from 26,802 in 2013 to 29,237 in 2022 may have contributed to this upward pressure on rent prices, as demand for rental properties likely increased with the growing population.
Looking at the most recent data, the average home price in zip code 27012 reached $367,077 in 2023 and further increased to $376,711 in 2024. This represents a 2.6% year-over-year increase from 2023 to 2024. Concurrently, federal interest rates rose from 5.02% in 2023 to 5.33% in 2024, potentially impacting homebuying decisions in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 27012 will continue to rise, albeit at a more moderate pace. Based on historical data and current market conditions, we project average home prices could reach approximately $425,000 by 2029. For average rent prices, the upward trend is expected to persist, potentially reaching around $1,400 per month in the next five years, assuming similar growth patterns continue.
In summary, zip code 27012 has maintained a strong homeownership base despite rising home prices and recent increases in interest rates. The area has seen significant appreciation in both home values and rent prices, likely driven by population growth and broader economic factors. While homeownership rates have slightly decreased in recent years, they remain high, suggesting a stable and desirable community. The continued rise in both home prices and rents indicates a robust demand for housing in this zip code, which is likely to persist in the coming years.
