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Zip Code 27253: Rising Home Values and Stable Ownership Rates in Graham, 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 27253, located in Graham, North Carolina, has experienced notable shifts in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 27253 has remained relatively stable, with slight fluctuations between 68% and 71% from 2013 to 2022. Despite this stability, average home prices have shown a significant upward trend. In 2016, the average home price was $149,721, and by 2022, it had increased to $263,199, representing a substantial 75.8% growth over six years. This rise in home values occurred despite the relatively constant homeownership rate, suggesting that existing homeowners benefited from appreciating assets while new buyers faced increasingly higher entry costs.
Federal interest rates have played a crucial role in shaping homeownership trends. In 2016, when interest rates were low at 0.4%, the homeownership rate was 69%. As interest rates rose to 1.83% in 2018, homeownership actually increased slightly to 71%, possibly due to buyers rushing to secure mortgages before further rate increases. However, by 2022, with interest rates at 1.68%, homeownership dipped back to 68%, indicating that rising home prices may have offset the benefits of still-relatively-low interest rates.
Renter percentages in zip code 27253 have mirrored homeownership rates, ranging from 29% to 32% between 2013 and 2022. Average rent prices have shown moderate fluctuations during this period. In 2013, the average rent was $746, and it reached $835 in 2021, an 11.9% increase. However, there was a notable decrease to $741 in 2022, possibly reflecting broader economic factors or local market adjustments. The population growth from 27,468 in 2013 to 32,203 in 2022 may have contributed to the overall upward pressure on rent prices, despite the recent dip.
Looking at the most recent data, the average home price in zip code 27253 continued its upward trajectory, reaching $284,543 in 2023 and further increasing to $295,661 in 2024. This represents a 12.3% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and future homeownership rates.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $350,000 by 2029. Average rent prices are expected to stabilize and gradually increase, potentially reaching around $900 per month by 2029, assuming steady population growth and economic conditions.
In summary, zip code 27253 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The interplay between federal interest rates, home values, and rent prices has shaped a dynamic housing market. The recent sharp rise in interest rates, coupled with consistently increasing home prices, may present challenges for future homebuyers, potentially leading to a slight shift towards renting. However, the area's steady population growth suggests ongoing demand for housing, which could continue to support both the rental and ownership markets in the coming years.
