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Madison, NC: Rising Home Values and Ownership Rates in a Small Town
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
Madison, located in North Carolina, is a small community with a rich history and a population that has fluctuated over the years. As of 2022, the town had 5,931 residents spread across 3.54 square miles. The town has experienced notable trends in homeownership rates and housing prices over the past decade.
The percentage of owner-occupied homes in Madison has shown slight variations but remained relatively stable. In 2013, the homeownership rate was 78%, which held steady until 2017. There was a dip to 73% in 2018, but it quickly rebounded to 77% in 2019 and maintained that level through 2021. Interestingly, 2022 saw a significant increase to 82% homeownership. This trend coincided with changes in average home prices, which have shown a consistent upward trajectory. The average home price in Madison rose from $107,142 in 2013 to $195,694 in 2022, representing an impressive 82.6% increase over this period.
Federal interest rates have played a role in homeownership trends in Madison. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This coincided with the stable homeownership rate of 77-78% during those years. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we interestingly saw the homeownership rate in Madison increase to 82%, possibly indicating other local factors influencing this trend.
Renter percentages in Madison have generally mirrored the inverse of homeownership rates. The proportion of renters decreased from 23% in 2014-2015 to 22% in 2016-2017. After a brief spike to 27% in 2018, it settled back to 23% from 2019 to 2021, before dropping to 18% in 2022. Average rent prices have shown some fluctuation over the years. They peaked at $725 in 2014-2015, then gradually decreased to $583 in 2019. However, there has been a recent upward trend, with average rent reaching $677 in 2022.
In 2023 and 2024, Madison's housing market continued to evolve. The average home price in 2023 was $198,506, showing a slight increase from 2022. In 2024, the average home price further rose to $205,118, indicating a continued upward trend in property values. Concurrently, federal interest rates increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership rates and housing affordability in the town.
Looking ahead, based on the historical data and current trends, we can forecast potential 5-year trends for Madison. Average home prices are likely to continue their upward trajectory, potentially reaching around $230,000 to $240,000 by 2029. Rent prices may also see a moderate increase, possibly settling in the $725 to $750 range. However, these projections could be influenced by various factors including economic conditions, local development, and changes in population dynamics.
In summary, Madison has experienced a notable increase in homeownership rates, rising to 82% in 2022, alongside a consistent upward trend in average home prices. The rental market has seen some fluctuations, with recent years showing a decrease in the percentage of renters and a moderate increase in average rent prices. The town's housing market appears to be dynamic, with recent years showing continued growth in property values despite rising interest rates.
