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Sims, NC: Rising Home Values and Shifting Ownership in a Growing Community
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
Sims, located in North Carolina, is a small but growing community 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 city's evolving real estate landscape. The homeownership rate in Sims has fluctuated over the years, with a notable shift occurring in recent times. In 2013, the city boasted a high homeownership rate of 83%. This rate remained stable until 2017 but experienced a significant drop to 67% in 2018. Since then, there has been a gradual increase, reaching 75% by 2022. Concurrently, average home prices have shown a steady upward trend. In 2010, the average home price was $153,021, which remained relatively stable until 2016. From 2017 onwards, there was a more pronounced increase, with prices rising from $165,285 to $248,442 in 2022, representing a substantial 50.3% increase over this five-year period.
The relationship between federal interest rates and homeownership rates in Sims reveals some interesting patterns. From 2013 to 2017, when interest rates were historically low (ranging from 0.11% to 1%), homeownership rates remained stable at 83%. However, as interest rates began to rise more significantly from 2018 (1.83%) to 2019 (2.16%), there was a notable drop in homeownership to 67% in 2018. Interestingly, despite interest rates dropping again in 2020 and 2021, homeownership rates only showed a modest recovery, suggesting that other local factors may have been influencing the housing market.
Renter percentages in Sims have mirrored the inverse of homeownership trends. The renter population increased from 17% in 2017 to a peak of 33% in 2018, before gradually decreasing to 25% by 2022. Average rent prices have shown considerable volatility. In 2013, the average rent was $310, which decreased to $237 in 2018. However, there was a sharp increase thereafter, with average rent reaching $908 in 2022, marking a 283% increase from 2018 to 2022. This significant rise in rent prices coincides with the city's population growth from 1,846 in 2018 to 2,367 in 2022, suggesting increased demand for rental properties.
In 2023 and 2024, Sims's housing market continued its upward trajectory. The average home price rose to $267,860 in 2023 and further increased to $276,828 in 2024, representing a 7.8% and 3.3% year-over-year growth, respectively. This growth occurred despite the federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007.
Looking ahead, predictive models suggest that average home prices in Sims will continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the city's limited housing supply. However, the rate of increase may moderate as more residents transition to homeownership if interest rates stabilize or decrease.
In summary, Sims has experienced significant changes in its housing market, characterized by fluctuating homeownership rates, steadily increasing home prices, and volatile rent prices. The interplay between these factors, along with population growth and broader economic conditions, will continue to shape the city's real estate landscape in the coming years.
