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Sunnyside's Housing Market: Rising Home Values and Persistent Renter Majority
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
Sunnyside, a neighborhood in Winston-Salem, North Carolina, has experienced notable shifts in its housing landscape over the past decade. This area has seen fluctuations in homeownership rates, coupled with significant changes in average home prices and rent costs. The neighborhood has predominantly been renter-occupied, with homeownership percentages ranging from 29% to 35% between 2013 and 2022.
The relationship between homeownership rates and average home prices in Sunnyside reveals an interesting dynamic. In 2013, when the homeownership rate was at its peak of 35%, the average home price was $64,545. As home prices began to rise, there was a general trend of decreasing homeownership. By 2018, when the average home price had increased to $88,125, the homeownership rate had dropped to 29%. However, this trend wasn't entirely consistent. In 2019, despite a significant jump in average home prices to $102,444, the homeownership rate increased to 33%. By 2022, with average home prices reaching $139,251, the homeownership rate stabilized at 32%.
Federal interest rates have played a role in shaping homeownership trends in Sunnyside. From 2013 to 2016, when interest rates were extremely low (between 0.09% and 0.40%), homeownership rates remained relatively stable, ranging from 29% to 35%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates showed some volatility but generally remained within a similar range. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight increase in homeownership to 32%, likely due to more affordable financing options.
Renter percentages and average rent prices in Sunnyside have shown their own distinct patterns. The neighborhood has consistently maintained a high percentage of renters, ranging from 65% to 71% between 2013 and 2022. Average rent prices have generally increased over this period, starting at $741 in 2013 and reaching $857 in 2022. Interestingly, the highest renter percentage (71%) was observed in 2014 and 2018, coinciding with average rent prices of $792 and $788 respectively. The population of Sunnyside has also grown during this period, from 709 in 2013 to 819 in 2022, potentially contributing to the sustained demand for rental properties.
In 2023 and 2024, Sunnyside's housing market continued its upward trajectory. The average home price in 2023 was $146,356, representing a 5.1% increase from 2022. In 2024, the average home price further rose to $159,237, an 8.8% increase from the previous year. Concurrently, federal interest rates increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Sunnyside are likely to continue their upward trend over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices are also expected to increase, driven by the neighborhood's consistent demand for rental properties and overall population growth.
In summary, Sunnyside has demonstrated a complex interplay between homeownership rates, average home prices, and rental trends. The neighborhood has maintained a predominantly renter-occupied status despite significant increases in both home prices and rent costs. The recent sharp rise in interest rates, coupled with steadily increasing home prices, may present challenges for potential homebuyers in the coming years, potentially reinforcing the neighborhood's rental-dominated housing market.
