Loading Content...
Silver Lake's Soaring Home Values: A Decade of Real Estate Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Silver Lake, a neighborhood in Wilmington, North Carolina, has experienced significant changes in its real estate landscape over the past decade. This area 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 Silver Lake has remained relatively stable, hovering around 62-64% between 2013 and 2022. Despite this stability, average home prices have shown a remarkable upward trajectory. In 2010, the average home price was $200,681, which decreased to a low of $168,303 in 2012. However, from 2013 onwards, there has been a consistent increase in average home prices. By 2022, the average home price had risen to $357,619, representing a substantial 78% increase from 2013. The relationship between federal interest rates and homeownership rates in Silver Lake shows an interesting pattern. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.4%), the homeownership rate remained stable at around 63-64%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight decrease in homeownership to 62%. This trend aligns with the general expectation that lower interest rates encourage homeownership due to more affordable financing options.
Renter percentages in Silver Lake have shown a slight increase over time, from 36% in 2013 to 38% in 2022. This increase coincides with a significant rise in average rent prices. In 2013, the average rent was $637, which steadily increased to $775 by 2019. However, there was a dramatic jump in average rent prices from 2020 to 2022, with the figure reaching $1,250 in 2022, representing a 96% increase from 2013. This sharp rise in rent prices could be attributed to increased demand for rental properties, possibly due to population growth in the area, which increased from 27,657 in 2013 to 33,960 in 2022.
In 2023 and 2024, Silver Lake's real estate market continued its upward trajectory. The average home price in 2023 reached $388,638, and in 2024 it further increased to $404,383. This represents a 13% increase from 2022 to 2024. Notably, federal interest rates also saw a significant rise during this period, reaching 5.02% in 2023 and 5.33% in 2024, the highest levels since 2007.
Looking ahead, based on the observed trends, we can predict that average home prices in Silver Lake will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also likely to increase, driven by population growth and demand for housing. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply catches up with demand.
In summary, Silver Lake has demonstrated a robust real estate market with steadily increasing average home and rent prices. The stability in homeownership rates despite rising prices suggests a strong local economy and desirability of the neighborhood. The sharp increase in both home prices and rent prices, particularly since 2020, indicates a highly competitive housing market that may continue to challenge affordability for some residents in the coming years.
