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Manteo's Rising Home Values and Ownership: A Decade of Coastal Market Evolution
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
Manteo, a charming town in North Carolina, has experienced notable shifts in its housing market over the past decade. This coastal community, known for its rich history and proximity to the Outer Banks, has seen fluctuations in homeownership rates, average home prices, and average rent prices. The overall trend shows an increase in homeownership, rising average home prices, and escalating average rent costs.
The homeownership rate in Manteo has shown a significant upward trend, particularly in recent years. In 2013, 65% of residents were homeowners. This figure remained relatively stable until 2020, when it began to climb more rapidly. By 2022, the homeownership rate had increased to 73%, representing a substantial 8 percentage point increase over a decade. This rise in homeownership coincides with a steady increase in average home prices. In 2013, the average home price in Manteo was $262,094. By 2022, this figure had risen to $468,807, marking a 78.9% increase over the same period.
The relationship between federal interest rates and homeownership rates in Manteo appears to follow the general trend of lower interest rates encouraging higher homeownership. For instance, from 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.4%), homeownership rates remained stable at around 65%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Manteo actually increased, reaching 73% by 2022. This suggests that other local factors may have played a more significant role in driving homeownership than national interest rates during this period.
Renter percentages in Manteo have conversely decreased as homeownership rates have risen. In 2013, 35% of residents were renters. This percentage fluctuated slightly over the years but showed a general downward trend, reaching 27% by 2022. Despite this decrease in the renter population, average rent prices have increased substantially. In 2013, the average rent was $704 per month. By 2022, this had risen to $1,184, representing a 68.2% increase. This significant rise in rent prices, despite a decreasing renter population, suggests strong demand for rental properties in Manteo, possibly driven by factors such as tourism or a shortage of available rental units.
In 2023 and 2024, the housing market in Manteo continued to evolve. The average home price in 2023 reached $488,790, a 4.3% increase from 2022. In 2024, it further increased to $505,684, representing a 3.5% year-over-year growth. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership trends in Manteo.
Looking ahead, predictive models suggest that average home prices in Manteo may continue to rise, albeit at a potentially slower rate due to higher interest rates. Over the next five years, average home prices could reach around $550,000 to $600,000, assuming a conservative annual growth rate of 2-3%. Average rent prices are also expected to increase, potentially reaching $1,400 to $1,500 per month within the next five years, based on historical trends and assuming continued demand for rental properties in the area.
In summary, Manteo has experienced a significant increase in homeownership rates and average home prices over the past decade, with a concurrent decrease in the renter population despite rising average rent prices. The town's housing market has shown resilience and growth, even in the face of fluctuating interest rates. These trends suggest a strong local housing market, likely influenced by Manteo's desirable coastal location and local economic factors.
