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Princeville, NC: Rising Home Values and Ownership in America's Oldest Black 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
Princeville, North Carolina, one of the oldest African American-founded communities in the United States, has experienced significant changes in its housing market and demographics over the past decade. Located in Edgecombe County, this small town has seen a general increase in homeownership rates and a steady rise in average home prices. From 2013 to 2022, the homeownership rate in Princeville increased from 66% to 70%, coinciding with a substantial 69.3% growth in average home prices, which rose from $52,746 to $89,322 over the same period. This positive relationship between homeownership rates and average home prices is evident throughout the analyzed timeframe.
Federal interest rates have played a crucial role in shaping Princeville's homeownership trends. The period from 2013 to 2020 was characterized by historically low interest rates, ranging from 0.09% to 0.38%, which likely contributed to the increased homeownership rates observed during this time. As interest rates began to rise in 2022 to 1.68%, a slight dip in homeownership from 71% in 2021 to 70% in 2022 was observed, illustrating the inverse relationship between interest rates and homeownership.
The rental market in Princeville has shown interesting dynamics. The percentage of renters fluctuated between 29% and 36% from 2013 to 2022, while average rent prices generally trended upward. Average rent increased from $718 in 2013 to $752 in 2022, with a peak of $936 in 2021. Notably, this peak in rent coincided with the lowest renter percentage of 29%, suggesting that higher rents may have encouraged some residents to shift towards homeownership or relocate. The town's population decrease from 3,133 in 2013 to 2,090 in 2022 may have also influenced these rental market dynamics.
In 2023 and 2024, Princeville's housing market continued to demonstrate strong growth. The average home price reached $98,808 in 2023 and further increased to $105,722 in 2024, representing an 18.4% increase over two years. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. The resilience of Princeville's housing market in the face of these higher interest rates is noteworthy, as such conditions would typically be expected to slow market growth.
Based on historical data and current trends, projections suggest that average home prices in Princeville will continue to rise over the next five years, potentially reaching around $130,000 by 2029. This projection assumes a continued, albeit possibly slower, growth rate due to higher interest rates. Average rent prices are also expected to increase, potentially reaching $900-$950 per month by 2029, following the general upward trend observed in recent years.
In conclusion, Princeville has experienced a notable increase in homeownership rates and average home prices over the past decade, despite a decline in population. The resilience of the housing market, even in the face of rising interest rates, suggests a strong local demand for homeownership. The rental market has shown more volatility, with rent prices generally increasing but renter percentages fluctuating. These trends indicate a shifting housing landscape in Princeville, with a growing preference for homeownership and rising property values shaping the town's future.
