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Lumber Bridge, NC: Rising Home Values and Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lumber Bridge, a small town in North Carolina, has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership, average home prices, and average rent prices, revealing interesting patterns in the local real estate landscape.
The homeownership rate in Lumber Bridge has shown a gradual decline from 2013 to 2022. In 2013, 68% of the housing units were owner-occupied. This figure rose to 74% in 2014 and remained stable until 2018. However, from 2019 onwards, there was a consistent decrease, reaching 65% by 2022. Interestingly, this decline in homeownership coincided with a steady increase in average home prices. The average home price in Lumber Bridge rose from $120,207 in 2013 to $189,969 in 2022, representing a 58% increase over this period.
The relationship between federal interest rates and homeownership rates in Lumber Bridge shows some correlation. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates were at their highest (74%). As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates started to decline, dropping to 65% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Lumber Bridge has inversely mirrored the homeownership trend, increasing from 26% in 2014 to 34% in 2022. This rise in renter-occupied units coincided with a substantial increase in average rent prices. The average rent rose from $274 in 2013 to $891 in 2022, marking a 225% increase. This sharp rise in rent prices, especially noticeable from 2020 to 2022, may have been influenced by the town's population growth from 988 in 2020 to 1,105 in 2022, potentially increasing demand for rental properties.
In 2023 and 2024, the housing market in Lumber Bridge continued its upward trajectory. The average home price reached $204,618 in 2023 and further increased to $216,955 in 2024. This represents a 14.2% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the town.
Looking ahead, based on the observed trends, we can predict that average home prices in Lumber Bridge will continue to rise over the next five years, potentially reaching around $250,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. However, the rate of increase may slow down due to the current high interest rates, which could moderate demand.
In summary, Lumber Bridge has experienced a shift towards more renter-occupied housing units, accompanied by substantial increases in both average home prices and rent prices. The town's growing population and broader economic factors have likely contributed to these trends. The future of Lumber Bridge's housing market will likely be characterized by continued price growth, albeit potentially at a more moderate pace, influenced by high interest rates and local economic conditions.
