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Rising Home Values in Bailey, NC: A Decade of Market Changes
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
Bailey, North Carolina, is a small community that has experienced significant demographic and housing market changes over the past decade. The town has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Bailey has shown a general decline from 2013 to 2021, with a slight uptick in 2022. In 2013, the homeownership rate was 73%, which gradually decreased to 66% by 2021. However, 2022 saw an increase to 71%, indicating a potential shift in the local housing market. During this period, average home prices in Bailey have shown a consistent upward trend. In 2013, the average home price was $118,666, which steadily increased to $237,198 by 2022, representing a substantial 100% increase over nine years.
The relationship between federal interest rates and homeownership rates in Bailey aligns with well-established trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable around 74%. As interest rates began to rise more significantly from 2017 onwards, homeownership rates in Bailey declined, reaching a low of 66% in 2021 when interest rates were at 0.08%. The increase in homeownership to 71% in 2022 coincided with a rise in interest rates to 1.68%, possibly indicating other local factors influencing home buying decisions.
Renter percentages in Bailey have generally increased as homeownership rates declined. From 2013 to 2021, the percentage of renters rose from 27% to 34%. Average rent prices have also shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $579, which increased to $794 by 2022, representing a 37% increase. It's worth noting that the population of Bailey decreased from 2,073 in 2013 to 1,964 in 2022, which may have influenced rental market dynamics.
In 2023, the average home price in Bailey reached $250,173, with federal interest rates at 5.02%. Moving into 2024, the average home price further increased to $262,947, while interest rates rose slightly to 5.33%. These figures demonstrate a continuation of the upward trend in home prices despite higher interest rates, suggesting strong demand in the local housing market.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Bailey will likely continue to rise over the next five years, potentially reaching around $300,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $900 per month within the same timeframe. However, these projections assume relatively stable economic conditions and no major disruptions to the local housing market.
In summary, Bailey has experienced a general trend of declining homeownership rates and increasing renter percentages from 2013 to 2021, with a recent reversal in 2022. Average home prices have shown consistent growth, more than doubling over the past decade. Rent prices have also increased, though at a slower rate. The relationship between interest rates and homeownership rates generally follows expected patterns, with some local variations. The continued rise in home prices through 2023 and 2024, despite higher interest rates, suggests a robust local housing market that may continue to see appreciation in both home values and rental rates in the coming years.
