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Rising Home Values and Ownership Trends in Zip Code 28001: Albemarle's Decade of Growth
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
Zip code 28001, located in Albemarle, North Carolina, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, covering 137.96 square miles, has seen a generally increasing trend in homeownership alongside fluctuating average home and rent prices.
The homeownership rate in zip code 28001 has shown a gradual increase from 65% in 2013 to 67% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2016, the average home price was $113,145, which steadily increased to $224,726 by 2022, representing a 98.6% increase over six years. This substantial growth in home values may have contributed to the rising homeownership rates, as residents likely viewed property ownership as an increasingly attractive investment.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with the increase in homeownership from 65% to 68%. The accessibility of affordable financing options during this time likely encouraged more residents to purchase homes. However, as interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), we see a slight dip in homeownership to 67% in 2022, suggesting that higher borrowing costs may have deterred some potential buyers.
The rental market in zip code 28001 has shown interesting trends as well. The percentage of renters decreased from 34% in 2013 to 32% in 2020, before slightly increasing to 33% in 2022. Average rent prices have fluctuated over the years, starting at $703 in 2013, peaking at $797 in 2020, and then settling at $797 again in 2022. This represents a 13.4% increase in average rent over the decade. The slight increase in renters from 2020 to 2022 may be attributed to rising home prices and interest rates, making renting a more viable option for some residents.
Looking at the most recent data, average home prices in zip code 28001 continued to rise, reaching $238,638 in 2023 and $248,278 in 2024. This represents a 6.2% increase from 2022 to 2023 and a further 4% increase from 2023 to 2024. Concurrently, federal interest rates have remained high, at 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 28001 will continue to rise, albeit at a potentially slower rate due to higher interest rates. Based on the historical data and current trends, we project average home prices could reach approximately $290,000 to $310,000 by 2029. For average rent prices, the forecast suggests a moderate increase, potentially reaching $850 to $900 per month by 2029, assuming consistent growth patterns and economic conditions.
In summary, zip code 28001 has experienced a notable increase in homeownership rates and significant growth in average home prices over the past decade. The interplay between federal interest rates, home prices, and rental market dynamics has shaped the housing landscape in this area. While homeownership has generally trended upward, recent increases in interest rates and home prices may present challenges for potential buyers, potentially leading to a more balanced market between owners and renters in the coming years.
