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Home Values and Ownership in Zip Code 28206: A Decade of Robust Growth in Charlotte's Real Estate 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 28206 in Charlotte, North Carolina, has experienced significant changes in its housing market over the past decade. This area has seen a gradual increase in homeownership rates, coupled with substantial growth in average home prices and average rent prices. The dynamic interplay between these factors offers insights into the evolving landscape of this Charlotte neighborhood.
The homeownership rate in zip code 28206 has shown a gradual upward trend, increasing from 32% in 2013 to 38% in 2022. This 6 percentage point increase coincides with a dramatic rise in average home prices. In 2013, the average home price was $70,657, which steadily climbed to $307,950 by 2022, representing a remarkable 336% increase over nine years. The most significant year-over-year increase occurred between 2020 and 2021, with average home prices jumping from $207,871 to $258,128, a 24% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in this zip code. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relatively stable homeownership rates around 33%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates showed resilience, maintaining around 33-34%. Interestingly, the sharp drop in interest rates to 0.38% in 2020 and 0.08% in 2021 corresponded with an increase in homeownership to 36% and 35% respectively, likely due to more affordable financing options.
The renter population in zip code 28206 has fluctuated over the years, decreasing from 68% in 2013 to 62% in 2022. Despite this decrease, average rent prices have shown a consistent upward trend. In 2013, the average rent was $749, which increased to $916 by 2022, representing a 22% rise. The most significant jump in average rent occurred between 2020 and 2021, rising from $941 to $1,037, a 10% increase in a single year. This rise in rent prices, despite a decreasing renter population percentage, suggests a growing demand for rental properties, possibly driven by the area's overall population growth from 12,778 in 2013 to 14,677 in 2022.
In 2023 and 2024, the housing market in zip code 28206 continued its upward trajectory. The average home price reached $318,848 in 2023 and further increased to $330,887 in 2024, representing a 3.5% and 3.8% year-over-year growth respectively. These increases occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, suggesting strong underlying demand in this Charlotte neighborhood.
Looking ahead, predictive models suggest that the upward trend in both average home prices and average rent prices is likely to continue over the next five years. Average home prices are projected to potentially reach around $400,000 by 2029, while average rent prices could approach $1,200 per month. These projections are based on historical trends and assume relatively stable economic conditions.
Zip code 28206 in Charlotte has demonstrated remarkable growth in its housing market. The area has seen a steady increase in homeownership rates, substantial appreciation in average home values, and rising average rent prices. The resilience of the market, even in the face of fluctuating interest rates, suggests strong underlying demand for housing in this area. As the population continues to grow and the area potentially undergoes further development, these upward trends in both ownership and rental markets are likely to persist, making zip code 28206 an area of significant interest for both residents and investors in the coming years.
