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Thomasville's Housing Landscape: Rising Home Values and Shifting Ownership in the Furniture City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Thomasville, North Carolina, a city in Davidson County known for its furniture-making heritage, has experienced significant changes in its housing market over the past decade. The city has seen a gradual decrease in homeownership rates, accompanied by substantial increases in both average home prices and rent prices. This analysis examines these trends and their implications for the local housing market.
From 2013 to 2022, Thomasville's homeownership rate showed a slight downward trend. In 2013, 66% of housing units were owner-occupied, which decreased to 64% by 2022. During this same period, average home prices in Thomasville grew substantially. The average home price rose from $101,258 in 2013 to $204,121 in 2022, representing a 101.6% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Thomasville. From 2013 to 2016, interest rates remained historically low, ranging from 0.1% to 0.4%. During this period, homeownership rates in Thomasville remained relatively stable, between 63% and 66%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates showed a slight decline, dropping to 64% in 2022. This trend aligns with the general principle that higher interest rates can make mortgage financing less affordable, potentially discouraging homeownership.
As homeownership rates decreased, the percentage of renters in Thomasville increased from 34% in 2013 to 36% in 2022. Concurrently, average rent prices rose substantially. The average rent increased from $631 per month in 2013 to $806 in 2022, representing a 27.7% rise over nine years. The city's population grew from 36,584 in 2013 to 37,921 in 2022, a 3.7% increase. This population growth, combined with the shift towards renting, likely contributed to the upward pressure on rent prices.
In 2023 and 2024, Thomasville's housing market continued to evolve. The average home price in 2023 reached $216,774, a 6.2% increase from 2022. By 2024, it further rose to $225,767, marking a 4.1% year-over-year increase. Simultaneously, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Looking ahead, predictive models suggest that Thomasville's housing market will continue to see growth in both home prices and rents over the next five years. Average home prices are projected to increase by approximately 4-5% annually, potentially reaching around $275,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially exceeding $950 per month by 2029.
In summary, Thomasville has experienced a gradual shift towards renting, with homeownership rates declining slightly as average home prices have more than doubled since 2013. The rental market has seen steady growth in both demand and prices. With rising interest rates and continued population growth, Thomasville's housing market is likely to remain dynamic, presenting both opportunities and challenges for residents and potential homebuyers in the coming years.
