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Home Values Soar in Lake Norman's 28117 Zip Code: A Decade of Housing Market Transformation
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 28117, located in Lake Norman of Iredell, North Carolina, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a steady decline in homeownership percentage, coupled with substantial increases in both average home prices and average rent prices.
The homeownership rate in zip code 28117 has shown a consistent downward trend, decreasing from 79% in 2013 to 69% in 2022. This 10 percentage point drop coincides with a dramatic rise in average home prices. In 2013, the average home price was $309,429, but by 2022, it had nearly doubled to $600,075. This inverse relationship suggests that as home prices increased, fewer residents could afford to purchase homes, leading to a decline in homeownership rates.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.40%, which coincided with a period of relatively stable homeownership rates around 74-76%. However, as interest rates began to rise more sharply from 2017 (1.00%) to 2019 (2.16%), we see a corresponding acceleration in the decline of homeownership rates, dropping from 75% in 2017 to 73% in 2019. The brief period of extremely low interest rates in 2020 and 2021 (0.38% and 0.08% respectively) did not reverse the trend, possibly due to the rapid increase in home prices during this time.
As homeownership rates declined, the percentage of renters in zip code 28117 increased from 21% in 2013 to 31% in 2022. This shift coincided with a steady rise in average rent prices, from $1,311 in 2013 to $1,504 in 2022. The population of the area also grew significantly during this period, from 35,100 in 2013 to 46,205 in 2022, potentially contributing to increased demand for rental properties and higher rent prices.
In 2023 and 2024, the average home prices in zip code 28117 continued to rise, reaching $613,912 in 2023 and $635,111 in 2024. This represents a 5.8% increase from 2022 to 2024. Notably, federal interest rates also increased substantially during this period, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007. These high interest rates may further impact homeownership rates in the area.
Looking ahead, based on the observed trends, we can project that average home prices in zip code 28117 may continue to increase over the next five years, potentially reaching around $750,000 by 2029. Average rent prices are also likely to rise, possibly surpassing $1,800 per month within the same timeframe. However, the rate of increase may slow down due to the current high interest rates and potential market stabilization.
In summary, zip code 28117 has experienced a significant shift from homeownership to renting, driven by rapidly increasing home prices and fluctuating interest rates. The area has seen substantial population growth, which has likely contributed to rising property values and rental costs. As we move forward, the interplay between interest rates, population growth, and housing supply will continue to shape the real estate landscape in this Lake Norman community.
