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Rising Home Values and Stable Ownership in Lumberton, NC: A Decade of Housing Market Shifts
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
Lumberton, North Carolina, the county seat of Robeson County, has experienced notable changes in its housing market over the past decade. From 2013 to 2022, the city maintained a steady homeownership rate of 55%, indicating a consistent balance between owning and renting among residents. During this period, average home prices in Lumberton showed a significant upward trend. In 2016, the average home price was $87,692, which increased to $134,327 by 2022, representing a substantial 53% growth over six years. This increase in home values occurred despite a slight decrease in population from 36,764 in 2016 to 32,234 in 2022, suggesting that other factors were influencing the housing market.
The stability in homeownership rates during a period of rising home prices can be partially attributed to the federal interest rate trends. Interest rates remained historically low from 2013 to 2021, ranging from 0.08% to 1.83%. These low rates likely made homeownership more accessible for many residents, offsetting the effect of rising home prices. For example, when interest rates were at 0.08% in 2021, average home prices reached $116,819, a 31% increase from 2016, yet the homeownership rate remained stable.
Rental trends in Lumberton showed a slight shift, with the percentage of renters increasing from 42% in 2013 to 45% in 2022. This change coincided with a steady increase in average rent prices. The average rent rose from $588 in 2013 to $792 in 2022, a 35% increase over nine years. This trend suggests that despite rising rents, a growing portion of the population opted for or needed to rent, possibly due to the even steeper increase in home prices or other economic factors.
In 2023 and 2024, Lumberton's housing market continued its upward trajectory. The average home price reached $144,302 in 2023 and further increased to $148,562 in 2024, representing a 10.6% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, the highest levels since 2007. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Based on the observed trends, projections suggest that average home prices in Lumberton will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average home prices could reach around $170,000 to $180,000 by 2029. Similarly, average rent prices are expected to continue their upward trend, potentially reaching $900 to $950 per month by 2029, assuming current economic conditions and population trends persist.
In conclusion, Lumberton has maintained a stable homeownership rate despite significant increases in both home prices and rents over the past decade. The interplay between rising property values, historically low interest rates until recently, and a slight shift towards renting has shaped the city's housing landscape. The recent spike in interest rates, combined with continued property value appreciation, may present new challenges and opportunities for Lumberton's housing market in the coming years.
