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Old Fort, NC: Rising Home Values and Declining Ownership in a Historic 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
Old Fort, located in North Carolina, is a small community with a rich history. Over the past decade, the city has experienced fluctuations in homeownership rates and significant changes in average home and rent prices. The overall trend shows a decline in homeownership, coupled with rising average home prices and variable average rent prices.
The homeownership rate in Old Fort has shown a general downward trend from 2013 to 2022. In 2013, the homeownership rate was 77%, which gradually decreased to 66% by 2022. This decline coincided with a substantial increase in average home prices. In 2016, the average home price was $149,734, which rose steadily to $263,295 by 2022, representing a 75.8% increase over six years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable between 75% and 80%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates declined more rapidly, dropping from 73% in 2017 to 68% in 2019. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in Old Fort has increased as homeownership has declined. The percentage of renters rose from 23% in 2013 to 34% in 2022. Interestingly, average rent prices have shown significant volatility during this period. In 2013, the average rent was $633, which dropped sharply to $343 in 2015 before rising again to $830 in 2022. This represents a 31% increase in average rent from 2013 to 2022, despite fluctuations. The increase in the renter population may have contributed to the overall upward pressure on rent prices, particularly in recent years.
In 2023 and 2024, the housing market in Old Fort continued to evolve. The average home price reached $274,401 in 2023 and further increased to $278,830 in 2024, showing a continued upward trend. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, predictive models suggest that average home prices in Old Fort are likely to continue their upward trajectory over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the growing renter population and overall housing market trends. However, the rate of increase may be moderated by economic factors and local market conditions.
In summary, Old Fort has experienced a notable shift in its housing landscape over the past decade. The decline in homeownership rates, coupled with rising average home prices and fluctuating rent prices, reflects broader economic trends and local market dynamics. The recent sharp increase in interest rates may further shape the housing market, potentially slowing home price growth but also making homeownership more challenging for some residents.
