Loading Content...
Rising Home Values and Stable Ownership Rates in Charlotte's Zip Code 28209: A Decade of Housing Market Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 28209, located in Charlotte, North Carolina, is a dynamic area that has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the evolving real estate landscape of this urban neighborhood.
The homeownership rate in zip code 28209 has remained relatively stable, fluctuating between 52% and 56% from 2013 to 2022. However, there has been a slight downward trend, with the rate decreasing from 56% in 2013 to 53% in 2022. Concurrently, average home prices have shown a substantial increase. In 2010, the average home price was $252,237, which rose to $591,857 by 2022, representing a 134.6% increase over 12 years.
The relationship between federal interest rates and homeownership rates in this zip code is somewhat complex. Despite historically low interest rates from 2010 to 2021, ranging from 0.08% to 2.16%, the homeownership rate did not significantly increase. This suggests that other factors, such as rising home prices, may have counteracted the potential positive impact of low interest rates on homeownership.
Renter percentages in zip code 28209 have shown a slight upward trend, increasing from 44% in 2013 to 47% in 2022. This rise in renters coincides with an increase in average rent prices. In 2013, the average rent was $1,113, which climbed to $1,421 by 2022, a 27.7% increase over nine years. The population growth from 21,274 in 2013 to 23,100 in 2022 may have contributed to the increased demand for rental properties, potentially driving up rent prices.
Looking at the most recent data, the average home price in zip code 28209 reached $596,290 in 2023 and further increased to $631,154 in 2024. This represents a 6.6% year-over-year increase from 2023 to 2024. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 28209 will continue to rise, potentially reaching around $750,000 by 2029. This projection is based on the historical growth rate and assumes similar market conditions. For average rent prices, the forecast suggests a continued upward trend, potentially reaching approximately $1,800 per month by 2029.
In summary, zip code 28209 has experienced a slight decrease in homeownership rates alongside a substantial increase in average home prices over the past decade. Renter percentages have marginally increased, accompanied by rising average rent prices. The area's population growth and the overall trend of urbanization in Charlotte may continue to drive demand for both owned and rented properties. However, the recent spike in interest rates could potentially slow down the rapid appreciation of home prices and affect affordability for potential homebuyers in the coming years.
