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Rising Home Values and Ownership in Alliance, NC: A Decade of Housing Market Resilience
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
Alliance is a small town located in North Carolina, covering an area of 2.09 square miles. The town has experienced fluctuations in its population and housing market over the past decade. Homeownership rates have remained relatively stable, ranging from 67% to 76% between 2013 and 2022. Average home prices have shown a steady increase, particularly in recent years, while average rent prices have demonstrated more volatility.
The homeownership rate in Alliance has fluctuated over the years, with a general upward trend from 2013 to 2019, followed by a slight decline. In 2013, the homeownership rate was 71%, which increased to a peak of 76% in 2019. However, by 2022, it had decreased to 70%. Concurrently, average home prices have shown a consistent upward trajectory. In 2015, the average home price was $96,652, which steadily increased to $166,628 by 2022, representing a 72% increase over seven years.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates in Alliance remained relatively stable around 67-71%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates in Alliance actually increased slightly, peaking at 76% in 2019 before declining to 70% in 2022. This suggests that other local factors may have influenced homeownership rates more strongly than national interest rates in this small town.
Renter percentages in Alliance have shown an inverse relationship to homeownership rates, naturally. The percentage of renters decreased from 33% in 2015 to 24% in 2019, before rising again to 30% in 2022. Interestingly, average rent prices have shown significant volatility. In 2013, the average rent was $760, which decreased to $619 by 2015. After a brief increase to $632 in 2016, rent prices dropped dramatically to $295 in 2018. By 2022, the average rent had increased slightly to $345, but remained significantly lower than the 2013-2017 levels.
In 2023, the average home price in Alliance reached $171,986, continuing the upward trend observed in previous years. This represents a 3.2% increase from 2022. Moving into 2024, the average home price has further increased to $181,354, marking a 5.4% rise from 2023. Concurrently, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying decisions in the town.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in Alliance will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. A conservative estimate would put the average home price around $210,000 to $220,000 by 2029. As for rent prices, given their historical volatility, it's challenging to make a precise prediction. However, if the town's economy remains stable, we might see a gradual increase in average rent prices, potentially reaching $400 to $450 by 2029.
In summary, Alliance has experienced a general trend of increasing homeownership rates and rising average home prices over the past decade. Despite fluctuations in the rental market, the town has maintained a strong majority of owner-occupied housing units. The recent sharp increases in federal interest rates, coupled with consistently rising home prices, may present challenges for future homebuyers in Alliance. However, the town's relatively affordable housing market compared to many other areas could continue to attract residents and maintain stable property values.
