Loading Content...
Sanford, NC: Home Values and Ownership Trends in a Growing City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Sanford, North Carolina, a city of 49,092 residents spread across 29.56 square miles, has witnessed significant changes in its housing market over the past decade. Located in the heart of the state, Sanford's real estate landscape has evolved considerably, reflecting broader economic trends and changing housing preferences. The homeownership rate in Sanford has experienced a gradual decline from 2013 to 2022. In 2013, 66% of residents owned their homes, but this figure decreased to 62% by 2022. Correspondingly, the percentage of renters increased from 34% in 2013 to 38% in 2022. This shift coincided with a remarkable rise in average home prices. The average home price in Sanford more than doubled over nine years, increasing from $123,578 in 2013 to $250,578 in 2022, representing a 102.8% increase.
The interplay between federal interest rates and homeownership rates in Sanford follows a well-established pattern. Between 2013 and 2021, when interest rates remained low, ranging from 0.08% to 1.83%, homeownership rates remained relatively stable, fluctuating between 63% and 66%. However, as interest rates began to rise sharply in 2022 to 1.68%, homeownership rates dropped to 62%, suggesting that higher interest rates may have deterred some potential buyers.
Sanford's rental market has also undergone significant changes. The average rent price increased from $744 in 2013 to $836 in 2022, a 12.4% rise. This increase in rent prices coincided with the growing percentage of renters in the city. The population growth from 46,053 in 2013 to 49,092 in 2022 likely contributed to the increased demand for rental properties, driving up both the percentage of renters and average rent prices.
In 2023 and 2024, the housing market in Sanford continued to evolve. The average home price reached $273,475 in 2023 and further increased to $283,225 in 2024, representing a 13% rise from 2022 to 2024. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Predictive models suggest that average home prices in Sanford may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the ongoing shift towards renting. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply catches up with demand.
In summary, Sanford has experienced a notable decrease in homeownership rates coupled with a substantial increase in average home prices over the past decade. The rental market has grown, with both the percentage of renters and average rent prices rising. Recent years have seen a continuation of these trends, with further increases in home prices and interest rates. These patterns reflect broader economic factors and changing housing preferences, shaping the future of Sanford's real estate landscape.
