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Rising Home Values and Declining Ownership: Pleasant Garden's Evolving Housing Landscape
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Pleasant Garden, a charming town in North Carolina, has experienced notable shifts in its housing landscape over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices, revealing intriguing patterns in the local real estate market.
The homeownership rate in Pleasant Garden has shown a gradual decline from 2013 to 2022. In 2013, 78% of residents owned their homes, but by 2022, this figure had dropped to 67%. Conversely, the percentage of renters increased from 20% in 2013 to 33% in 2022. This shift coincides with a significant rise in average home prices. In 2013, the average home price was $143,055, which steadily increased to $271,232 by 2022, representing a substantial 89.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in Pleasant Garden follows a well-established trend. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 75%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 67%. This inverse relationship demonstrates how higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in Pleasant Garden has grown alongside average rent prices. In 2013, 20% of residents were renters, paying an average rent of $816. By 2022, the renter population had increased to 33%, with average rent rising to $857. This represents a modest 5% increase in average rent over nine years, despite the significant growth in the renter population. The town's population growth, from 10,301 in 2013 to 12,745 in 2022, may have contributed to the increased demand for rental properties.
In 2023, the average home price in Pleasant Garden reached $287,565, with federal interest rates at 5.02%. Moving into 2024, the average home price further increased to $296,886, while interest rates rose slightly to 5.33%. These figures indicate a continuing upward trend in both home prices and interest rates, potentially impacting affordability for prospective homebuyers.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Pleasant Garden will continue to rise, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,100 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Pleasant Garden has witnessed a gradual shift from homeownership to renting, accompanied by substantial increases in average home prices. The inverse relationship between federal interest rates and homeownership rates is evident, with higher rates correlating with lower ownership percentages. The rental market has expanded, with a growing renter population and moderately increasing average rents. As the town continues to grow, these trends are likely to persist, shaping the future of Pleasant Garden's housing market.
