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Rising Home Values and Shifting Ownership in Omah Street, Durham
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Omah Street, Durham: A Decade of Housing Market Transformation Omah Street, located in Durham, North Carolina, has undergone significant changes in its housing market over the past decade. This neighborhood has experienced fluctuations in homeownership rates, with a general trend towards increased renting in recent years. Average home prices have shown a consistent upward trajectory, while average rent prices have also risen substantially, particularly in the last few years.
The relationship between homeownership rates and average home prices in Omah Street reveals an interesting dynamic. From 2013 to 2018, the percentage of owner-occupied homes increased from 29% to 40%, coinciding with a rise in average home prices from $96,417 to $145,306. However, this trend reversed after 2018, with homeownership rates declining to 25% by 2022, despite average home prices continuing to climb to $254,762. This suggests that rising home prices may have outpaced the financial capacity of many residents to purchase homes in the neighborhood.
Federal interest rates have played a role in shaping homeownership trends in Omah Street. The period of low interest rates from 2013 to 2016, when rates ranged from 0.09% to 0.4%, corresponded with the initial increase in homeownership from 29% to 36%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline, dropping from 40% in 2018 to 25% in 2022.
The renter population in Omah Street has grown considerably, with the percentage of renter-occupied homes increasing from 59% in 2019 to 75% in 2022. This shift has been accompanied by a sharp rise in average rent prices. In 2013, the average rent was $620, which increased moderately to $793 by 2019. However, there was a dramatic jump to $1,148 in 2020 and further to $1,365 in 2022, representing a 120% increase over the decade. This surge in rent prices coincided with population fluctuations, rising from 3,836 in 2019 to 4,313 in 2021, before settling at 3,916 in 2022.
In 2023 and 2024, the housing market in Omah Street continued its upward trajectory. The average home price reached $266,655 in 2023 and further increased to $274,678 in 2024. This represents a 7.8% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may continue to impact homeownership rates in the neighborhood.
Looking ahead, predictive models suggest that both average home prices and rent prices in Omah Street are likely to continue their upward trend over the next five years. Average home prices are projected to increase by approximately 4-6% annually, potentially reaching around $350,000 by 2029. Average rent prices are expected to rise at a similar rate, possibly surpassing $1,700 per month within the same timeframe.
In summary, Omah Street has experienced a shift towards a renter-dominated market, with declining homeownership rates despite rising property values. The dramatic increase in both home prices and rent costs, coupled with fluctuating interest rates, has reshaped the neighborhood's housing landscape. These trends are expected to continue in the coming years, potentially further impacting the demographic composition and affordability of the area.
