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Smithfield, NC: Doubling Home Values Amid Shifting Ownership Trends
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
Smithfield, North Carolina, a vibrant town, has experienced notable changes in its housing landscape over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices, offering insights into the dynamic real estate market of this growing community. Homeownership in Smithfield has shown a slight upward trend in recent years. In 2013, the homeownership rate stood at 57%, and by 2022, it had increased to 58%. This modest growth coincides with significant changes in average home prices. In 2013, the average home price in Smithfield was $128,632. Over the next decade, the town saw a substantial increase in property values, with the average home price reaching $277,403 by 2022, representing a remarkable 115.7% increase.
The relationship between federal interest rates and homeownership rates in Smithfield presents an interesting pattern. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 0.4%), homeownership rates remained relatively stable, hovering around 55-57%. This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have played a significant role in homeownership decisions in Smithfield.
Renter occupancy in Smithfield has fluctuated slightly over the years, with a general downward trend. In 2013, renters occupied 43% of housing units, and this percentage remained stable until 2019. However, by 2022, the renter occupancy rate had decreased to 42%. Interestingly, average rent prices have shown volatility during this period. In 2013, the average rent was $800, which increased to $834 by 2021, representing a 4.25% rise. However, 2022 saw a significant drop in average rent to $717, a 14% decrease from the previous year. This drop in rent prices coincided with a population increase from 17,529 in 2021 to 18,138 in 2022, suggesting a possible increase in housing supply or other local economic factors affecting the rental market.
The years 2023 and 2024 have seen continued growth in Smithfield's housing market. The average home price in 2023 reached $287,236, a 3.5% increase from 2022. In 2024, the average home price further increased to $295,290, representing a 2.8% growth from 2023. This ongoing appreciation in home values occurs against a backdrop of rising federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, the highest levels seen in over a decade.
Looking ahead, based on the historical data and current trends, we can project continued growth in Smithfield's housing market over the next five years. Average home prices are likely to maintain their upward trajectory, albeit potentially at a more moderate pace due to higher interest rates. We might expect average home prices to reach around $330,000 to $350,000 by 2029. Rent prices, which have shown more volatility, may stabilize and gradually increase, potentially reaching an average of $850 to $900 per month by 2029, assuming economic conditions remain favorable and population growth continues.
In summary, Smithfield has experienced significant appreciation in home values over the past decade, with a slight increase in homeownership rates. The rental market has shown more fluctuation, with recent decreases in both renter occupancy and average rent prices. The town's growing population and rising property values suggest a robust and attractive real estate market, despite the challenges of increasing interest rates. These trends indicate Smithfield's potential for continued growth and development in its housing sector in the coming years.
