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Lake Park: Rising Home Values and High Ownership Rates in a Resilient North Carolina Suburb
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
Lake Park, located in North Carolina, is a small suburban community known for its high rate of homeownership and steadily increasing property values. Over the past decade, the city has experienced notable shifts in its housing market, with average home prices rising significantly and homeownership rates fluctuating.
The homeownership rate in Lake Park has shown some variability but has generally remained high. In 2013, the homeownership rate stood at 88%, and by 2022, it had slightly decreased to 85%. Despite this minor decline, Lake Park maintains a strong owner-occupied housing market. Concurrently, average home prices have seen a substantial increase. In 2013, the average home price was $155,448, and by 2022, it had risen to $370,771, representing a remarkable 138% increase over this period.
The relationship between federal interest rates and homeownership rates in Lake Park shows some interesting patterns. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, fluctuating between 85% and 88%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate showed slight variations but remained robust, ending at 85% in 2022. This suggests that while interest rates may have some influence, other local factors also play a significant role in maintaining high homeownership levels in Lake Park.
Renter percentages and average rent prices in Lake Park have shown an inverse relationship to homeownership trends. The percentage of renters increased from 12% in 2013 to 15% in 2022. During this same period, average rent prices rose from $1,385 in 2013 to $1,675 in 2022, an increase of about 21%. This growth in both renter percentage and rent prices suggests an increasing demand for rental properties in the area, possibly driven by factors such as population growth or changing housing preferences.
In 2023 and 2024, Lake Park continued to see growth in its housing market. The average home price reached $379,874 in 2023 and further increased to $390,960 in 2024. This represents a 2.7% and 2.9% year-over-year increase respectively. Notably, federal interest rates also saw a significant rise during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homebuying trends.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in Lake Park will continue to rise over the next five years, potentially reaching around $450,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,900 per month within the same timeframe. These projections assume a continuation of current economic conditions and local market dynamics.
In summary, Lake Park has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing property values. Despite rising interest rates, the community has maintained a strong preference for owner-occupied housing. The rental market, while smaller, has shown consistent growth in both demand and prices. As the city continues to evolve, it will be important to monitor how these housing trends impact the overall community dynamics and affordability in Lake Park.
