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Soaring Home Values and Ownership Rates in Oak Island's 28465 Zip Code: A Decade of Coastal Property 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
Oak Island, located in zip code 28465 in North Carolina, has experienced significant changes in its housing market over the past decade. This coastal community has seen a notable shift in homeownership rates and property values, reflecting broader economic trends and local market dynamics. The homeownership rate in Oak Island has shown a strong upward trend, increasing from 73% in 2013 to 87% in 2022. This substantial rise in homeownership coincides with a dramatic increase in average home prices. In 2013, the average home price was $234,243, but by 2022, it had more than doubled to $542,359. This correlation suggests that as property values increased, more residents were motivated to invest in homeownership, possibly viewing it as a lucrative long-term investment.
The relationship between federal interest rates and homeownership rates in Oak Island is noteworthy. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership increased from 73% to 85%. The low-interest-rate environment likely made mortgages more affordable, encouraging more residents to purchase homes. However, it's interesting to note that even as interest rates began to rise significantly in 2022 (1.68%) and 2023 (5.02%), homeownership rates remained high at 87%, suggesting other factors were also influencing the local housing market.
Conversely, the percentage of renters in Oak Island has decreased substantially, from 27% in 2013 to 13% in 2022. This decline in renters corresponds with fluctuations in average rent prices. The average rent peaked at $1,321 in 2015 and then gradually decreased to $1,236 in 2022. The decreasing rental population, despite relatively stable rent prices, may indicate a strong preference for homeownership in the area or could be influenced by the growing population, which increased from 6,738 in 2013 to 8,292 in 2022.
Looking at the most recent data, the average home price in Oak Island continued to rise, reaching $570,652 in 2023 and $589,124 in 2024. This upward trend persisted despite the federal interest rate increasing to 5.33% in 2024, indicating strong demand in the local housing market that outweighed the potential dampening effect of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Oak Island will continue to increase, albeit at a potentially slower rate due to the higher interest rate environment. We project the average home price could reach approximately $650,000 by 2029. For rent prices, we expect a modest upward trend, potentially reaching an average of $1,350 per month by 2029, assuming the local economy remains stable and demand for rental properties doesn't significantly change.
In summary, Oak Island's housing market has been characterized by a strong shift towards homeownership, substantial increases in property values, and a declining rental sector. The resilience of the homeownership trend, even in the face of rising interest rates, suggests a robust local housing market driven by factors such as population growth and the area's desirability as a coastal community.
