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Zip Code 27356: Rising Home Values and Shifting Ownership Patterns in Star, 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 27356, located in Star, North Carolina, has experienced significant changes 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 ownership percentage has varied, while average home prices have shown a general upward trend, and average rent prices have fluctuated over the years.
Homeownership rates in zip code 27356 have fluctuated between 2013 and 2022. In 2013, the ownership rate was 72%, which decreased to 68% by 2017. There was a notable spike in 2019, reaching 76%, before settling back to 66% in 2022. Concurrently, average home prices have shown a steady increase. In 2013, the average home price was $81,769, which rose to $159,789 by 2022, representing a 95.4% increase over this period. This trend suggests that while home values have appreciated significantly, it hasn't necessarily translated to higher homeownership rates, possibly due to affordability concerns for some residents.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable around 68-72%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed more volatility, dropping to 66% by 2022. This suggests that higher interest rates may have made home purchases less affordable for some potential buyers.
Renter percentages in zip code 27356 have generally mirrored the inverse of homeownership rates, ranging from 28% in 2013 to 34% in 2022. Average rent prices have shown considerable fluctuation. In 2013, the average rent was $542, which peaked at $630 in 2016 before declining to $518 in 2022. Interestingly, the highest renter percentage (34% in 2022) coincided with one of the lower average rent prices in recent years, possibly indicating increased demand for rental properties despite lower rental costs.
In 2023 and 2024, average home prices in zip code 27356 continued their upward trajectory. The average home price reached $164,171 in 2023 and further increased to $170,704 in 2024, representing a 4% year-over-year growth. This growth occurred despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the rates seen in the previous decade.
Looking ahead, based on the historical data and current trends, we can forecast the following 5-year trends for average home and rent prices in zip code 27356: Average home prices are likely to continue their upward trend, albeit at a potentially slower rate due to higher interest rates. We might expect prices to reach around $190,000 to $200,000 by 2029. Average rent prices, which have been more volatile, may stabilize or see modest increases. Given the current trends, we might anticipate average rents to range between $550 and $650 over the next five years.
In summary, zip code 27356 has experienced significant growth in average home prices over the past decade, with this trend likely to continue, albeit potentially at a slower pace. Homeownership rates have fluctuated, showing sensitivity to interest rate changes. Rental markets have shown volatility in both occupancy rates and prices, suggesting a dynamic and responsive rental sector. The coming years may see a continued balance between ownership and rental markets, with both sectors adapting to economic conditions and local demand.
