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Laurel Hill: Rising Home Values Amidst Declining Ownership Rates
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
Laurel Hill, located in North Carolina, is a small community with a population of 2,560 as of 2022. This area has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics. The homeownership rate in Laurel Hill has shown a general decline from 2013 to 2022. In 2013, 78% of residents were homeowners, but this figure dropped to 63% by 2022. This trend coincides with fluctuations in average home prices. The average home price in 2016 was $56,021, and it increased to $82,862 by 2022, representing a substantial 47.9% rise over six years.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained low, hovering around 0.1% to 0.4%. During this period, homeownership rates in Laurel Hill remained relatively stable, ranging from 74% to 78%. However, as interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), homeownership rates started to decline, reaching 73% in 2019. This trend continued into 2022, with homeownership dropping to 63% as interest rates climbed to 1.68%.
The renter population in Laurel Hill has grown correspondingly, from 22% in 2013 to 37% in 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $788, which decreased to $597 by 2015. It then fluctuated, reaching $740 in 2021 before dropping to $608 in 2022. This volatility in rent prices, coupled with the increasing renter population, suggests a complex interplay of factors affecting the local rental market.
Moving into more recent data, the average home price in Laurel Hill continued its upward trajectory, reaching $92,295 in 2023 and $95,281 in 2024. This represents a further 15% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in Laurel Hill may continue to rise over the next five years, potentially reaching around $110,000 by 2029. However, this growth rate may slow compared to the sharp increases seen in recent years. Average rent prices are projected to stabilize and potentially increase moderately, possibly reaching $700-$750 per month by 2029, assuming current economic conditions persist.
In summary, Laurel Hill has experienced a significant shift from homeownership to renting over the past decade, coinciding with rising home prices and fluctuating rent costs. The recent sharp increase in federal interest rates, coupled with continued growth in average home prices, suggests that this trend may continue in the near future, potentially making homeownership more challenging for some residents while increasing demand for rental properties.
