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Housing Trends in Zip Code 27604: Rising Home Values and Stable Ownership in Raleigh's Urban Area
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 27604, located in Raleigh, North Carolina, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown a dynamic real estate market with fluctuating trends in both ownership and rental sectors.
The homeownership rate in zip code 27604 has remained relatively stable, with slight fluctuations over the years. In 2013, the homeownership rate was 56%, and it maintained this level through 2022, with minor variations in between. Interestingly, the average home prices in this area have shown a substantial increase during the same period. In 2013, the average home price was $148,753, and by 2022, it had risen dramatically to $350,033, representing a 135% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), the homeownership rate remained steady at around 54-55%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate slightly increased to 56%, possibly indicating that some renters were motivated to purchase homes before rates climbed further.
Renter percentages and average rent prices in zip code 27604 have also shown interesting trends. The percentage of renters fluctuated slightly, reaching a peak of 46% in 2015-2017 before settling at 44% in 2022. Average rent prices have steadily increased over the years, rising from $1,116 in 2013 to $1,210 in 2022, an 8.4% increase. This growth in rent prices, while significant, was not as dramatic as the increase in average home prices during the same period.
In 2023 and 2024, the real estate market in zip code 27604 continued to evolve. The average home price in 2023 was $353,654, showing a slight increase from 2022. In 2024, the average home price further rose to $359,506. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. Average home prices in zip code 27604 may continue to rise, but at a more moderate pace, potentially reaching around $400,000 by 2029. Average rent prices could also see continued growth, possibly approaching $1,400 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 27604 has demonstrated a robust real estate market with significant appreciation in home values and steady growth in rent prices. The area has maintained a relatively stable homeownership rate despite substantial increases in property values. The interplay between interest rates, home prices, and rental market dynamics will likely continue to shape the real estate landscape in this Raleigh neighborhood in the coming years.
