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Morehead Hill: Surging Home Values and Shifting Ownership in a Growing Durham Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Morehead Hill, a vibrant neighborhood in Durham, North Carolina, has experienced significant changes in its housing landscape over the past decade. This area has seen a notable shift in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The neighborhood has witnessed a steady decline in homeownership rates, accompanied by a substantial increase in average home prices. In 2013, 32% of residents owned their homes, with average home prices at $218,556. By 2022, homeownership had dropped to 20%, while average home prices surged to $516,651, marking a 136% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents.
Federal interest rates have played a role in shaping homeownership trends in Morehead Hill. From 2013 to 2016, when interest rates remained low (between 0.11% and 0.40%), homeownership rates remained relatively stable at around 32%. However, as interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, falling from 34% in 2017 to 20% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
Conversely, the renter population in Morehead Hill has grown significantly. In 2013, 68% of residents were renters, with average rent at $581. By 2022, the renter percentage had increased to 80%, with average rent rising to $1,280, a 120% increase. This shift towards renting coincides with the neighborhood's population growth from 663 in 2013 to 1,024 in 2022, suggesting that new residents may be more likely to rent than buy. The rising rent prices reflect increased demand for rental properties in the area.
Looking at the most recent data, average home prices in Morehead Hill reached $510,132 in 2023 and $520,979 in 2024, showing continued growth but at a more moderate pace compared to previous years. This trend occurs alongside higher interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially influencing buyer behavior and market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Morehead Hill will continue to rise, albeit at a slower rate than observed in the past decade. Projections suggest that by 2029, average home prices could reach approximately $600,000 to $650,000. Average rent prices are also expected to increase, potentially reaching $1,600 to $1,800 per month by 2029, assuming current trends persist.
In summary, Morehead Hill has experienced a significant shift from homeownership to renting, driven by rapidly increasing home prices and changing interest rates. The neighborhood has seen substantial growth in both population and housing costs, with renters now comprising the vast majority of residents. As the area continues to evolve, these trends are likely to shape the future character and demographics of Morehead Hill, potentially influencing local policies and development strategies.
