Loading Content...
Lyon Park's Housing Market: 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
Lyon Park, a neighborhood in Durham, North Carolina, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, along with substantial increases in both average home prices and average rent prices. The neighborhood has generally trended towards a higher percentage of renters, while property values have shown remarkable growth.
The relationship between homeownership rates and average home prices in Lyon Park reveals an interesting dynamic. In 2013, when the homeownership rate was 32%, the average home price was $80,626. As average home prices increased steadily, reaching $183,407 by 2018, the homeownership rate decreased to 24%. This trend continued, with average home prices climbing to $304,702 in 2022, while the homeownership rate slightly recovered to 27%. This inverse relationship suggests that rising property values may have made homeownership less accessible for many residents.
Federal interest rates have played a role in shaping homeownership trends in Lyon Park. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), the neighborhood saw a sharp decline in homeownership from 32% to 21%. This counterintuitive trend might be attributed to other local factors outweighing the potential benefits of low interest rates. As interest rates began to rise more significantly from 2016 onwards, homeownership rates stabilized and even showed a slight increase, reaching 27% by 2022 when the federal interest rate was 1.68%.
The renter population in Lyon Park has generally increased over time, correlating with rising average rent prices. In 2013, 68% of residents were renters, with an average rent of $703. By 2017, the renter percentage had increased to 80%, coinciding with an average rent of $797. The renter percentage peaked at 82% in 2016 when the average rent was $780. In recent years, there has been a slight decrease in the renter population, settling at 73% in 2022, with average rent reaching $813. These trends suggest that despite rising rents, the neighborhood has remained attractive to renters, possibly due to its location or other amenities.
In 2023 and 2024, Lyon Park's housing market showed signs of stabilization. The average home price in 2023 was $303,979, a slight decrease from 2022, while in 2024 it increased to $313,438. This period coincided with significantly higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Lyon Park may continue to rise moderately over the next five years, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $900 per month within the same timeframe. However, these projections assume relatively stable economic conditions and local market factors.
In summary, Lyon Park has experienced a shift towards a renter-majority population, coinciding with substantial increases in both average home prices and rent prices. The neighborhood's housing market has shown resilience and growth, with recent signs of stabilization in home prices. The interplay between federal interest rates, homeownership rates, and property values continues to shape the housing landscape in this Durham neighborhood.
