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Zip Code 27006: Rising Home Values and High Ownership Rates in Advance, North Carolina
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
Zip code 27006, located in Advance, North Carolina, has experienced significant changes in its housing market over the past decade. This area, spanning 63.65 square miles, has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 27006 has shown a general upward trend, increasing from 88% in 2013 to 90% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $219,550, which steadily climbed to $362,850 by 2022, representing a 65% increase over this period. The most significant year-over-year jump occurred between 2020 and 2021, when average home prices surged from $280,551 to $320,478, a 14.2% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 27006. The period of historically low interest rates from 2013 to 2021, where rates remained below 1% for several years, likely contributed to the increase in homeownership. For instance, as interest rates dropped from 1.83% in 2018 to 0.08% in 2021, homeownership rates rose from 87% to 92%, demonstrating the inverse relationship between interest rates and homeownership.
The rental market in zip code 27006 has experienced fluctuations in both renter percentages and average rent prices. The percentage of renters decreased from 13% in 2016 to 10% in 2022. Average rent prices have shown volatility, peaking at $1,068 in 2021 before dropping to $812 in 2022, a 24% decrease. This decrease in average rent coincided with a slight increase in the renter population, suggesting a potential market correction or increased rental supply.
In 2023, the average home price in zip code 27006 reached $376,656, continuing the upward trend seen in previous years. This represents a 3.8% increase from 2022. As of 2024, the average home price has further increased to $389,307, a 3.4% rise from 2023. Notably, federal interest rates have also risen 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 area.
Looking ahead, predictive models suggest that average home prices in zip code 27006 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $450,000 by 2029. Average rent prices are expected to stabilize and gradually increase, potentially reaching around $1,200 per month by 2029, assuming economic conditions remain relatively stable.
In summary, zip code 27006 has experienced a significant increase in homeownership rates and average home prices over the past decade, driven in part by historically low interest rates. The rental market has shown more volatility, with recent decreases in both renter percentages and average rent prices. The current trend of rising home prices and interest rates suggests a potentially more challenging market for new homebuyers in the coming years, while the rental market may see moderate growth.
