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Zip Code 27203: Rising Home Values and Declining Ownership in Asheboro, NC
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 27203, located in Asheboro, North Carolina, has experienced significant shifts in homeownership rates and housing prices over the past decade. This area, known for its rich history and proximity to the North Carolina Zoo, has seen a gradual decline in homeownership alongside rising average home prices and rent costs.
The homeownership rate in zip code 27203 has shown a downward trend since 2013. In 2013, 49% of residents owned their homes, but by 2022, this figure had decreased to 45%. Conversely, average home prices have risen substantially during this period. In 2013, the average home price was $97,232, and by 2022, it had increased to $176,573, representing an impressive 81.6% growth over nine years.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 49%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 45%. This inverse relationship suggests that higher interest rates may have contributed to the decreased affordability of homeownership in the area.
The renter population in zip code 27203 has grown correspondingly with the decline in homeownership. In 2013, 51% of residents were renters, and by 2022, this percentage had increased to 55%. Average rent prices have also risen during this period, albeit less dramatically than home prices. In 2013, the average rent was $622, and by 2022, it had increased to $657, a 5.6% rise. The population growth from 20,543 in 2013 to 22,179 in 2022 may have contributed to the increased demand for rental properties and the subsequent rise in rent prices.
Looking at the most recent data, the average home price in zip code 27203 reached $184,620 in 2023 and further increased to $196,292 in 2024. This represents a 11.2% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may continue to impact homeownership affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 27203 will continue to rise, potentially reaching around $230,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, we expect a more modest increase, potentially reaching an average of around $750 per month by 2029, considering the historical growth rate and local economic factors.
In summary, zip code 27203 has experienced a shift towards a renter-majority population, with homeownership rates declining from 49% to 45% between 2013 and 2022. This trend has occurred alongside a substantial 81.6% increase in average home prices and a more moderate 5.6% rise in average rent prices during the same period. The recent surge in federal interest rates to over 5% in 2023 and 2024, combined with continuously rising home prices, suggests that the trend towards renting may continue in the near future, barring significant changes in local economic conditions or housing policies.
