Loading Content...
Zip Code 27013: Rising Home Values and Strong Ownership Trends in Cleveland, North Carolina
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 27013, located in Cleveland, North Carolina, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has maintained a consistently high rate of owner-occupied housing, with recent trends showing an increase in homeownership and rising average home prices.
The ownership percentage in zip code 27013 has shown a general upward trend, increasing from 75% in 2015 to 78% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2015, the average home price was $135,212, which steadily climbed to $257,687 by 2022, representing a substantial 90.6% increase over seven years. The most dramatic jump occurred between 2020 and 2021, when average home prices surged from $189,546 to $225,916, a 19.2% increase in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2015 to 2022 saw historically low interest rates, ranging from 0.13% to 1.68%. These low rates likely contributed to the increased homeownership, as they made mortgages more affordable for potential buyers. The spike in homeownership from 77% in 2021 to 81% in 2020 coincides with interest rates dropping to near-zero levels (0.38% in 2020 and 0.08% in 2021), further illustrating this relationship.
As homeownership rates increased, the percentage of renters in zip code 27013 naturally decreased, from 25% in 2015 to 22% in 2022. Interestingly, average rent prices have shown some fluctuation during this period. In 2015, the average rent was $762, which decreased to $707 by 2022, a 7.2% reduction. This decline in rent prices, coupled with rising home prices, may have incentivized more residents to transition from renting to homeownership. The population growth from 6,846 in 2015 to 7,642 in 2022 might have also influenced the housing market dynamics, potentially increasing demand for both rental and owned properties.
Looking at the most recent data, average home prices in zip code 27013 continued to rise, reaching $267,174 in 2023 and $279,051 in 2024. This represents a 3.7% increase from 2022 to 2023 and a further 4.4% increase from 2023 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, marking a substantial shift from the low-interest environment of previous years.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 27013 to continue rising, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $330,000 to $350,000, assuming a moderate annual growth rate of 3-4%. Rent prices, which have been relatively stable, may see a modest increase to around $750-$800 per month by 2029, reflecting potential inflation and increased housing demand.
In summary, zip code 27013 has experienced a notable increase in homeownership rates and average home prices from 2015 to 2024. The area has maintained a high proportion of owner-occupied housing, likely influenced by historically low interest rates until recent years. While rent prices have remained relatively stable, the significant appreciation in home values suggests a strong local housing market. The recent rise in interest rates may impact future homeownership trends and price growth, but the area's consistent population growth indicates sustained demand for housing in this North Carolina community.
