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Zip Code 27502: Apex, NC's Resilient Housing Market and Soaring Home Values
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 27502, located in Apex, North Carolina, has experienced significant growth and changes in its housing market over the past decade. This area has seen a notable increase in homeownership rates, coupled with rising average home prices and average rent costs, reflecting the dynamic nature of this suburban community.
The homeownership rate in zip code 27502 has shown a steady upward trend, increasing from 74% in 2014 to 79% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2014, the average home price was $283,520, which rose dramatically to $559,262 by 2022, representing a 97% increase over eight years. This trend suggests a strong correlation between rising home values and increasing homeownership rates, possibly indicating growing wealth among residents and a desire for property investment in this area.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite the federal interest rate increasing from 0.09% in 2014 to 1.68% in 2022, the homeownership rate continued to rise. This trend contradicts the typical expectation that higher interest rates discourage home buying. However, it's worth noting that interest rates remained historically low during this period, which may have continued to support homeownership growth.
Conversely, the percentage of renters in zip code 27502 has shown a slight decrease, moving from 24% in 2014 to 21% in 2022. Despite this decline, average rent prices have increased from $1,470 in 2014 to $1,557 in 2022, a 5.9% rise. This trend suggests that while fewer people are renting, those who do are paying more. The population growth from 31,050 in 2014 to 47,020 in 2022 may have contributed to increased demand for rental properties, driving up average rent prices despite the lower percentage of renters.
Looking at more recent data, the average home price in zip code 27502 slightly decreased to $557,310 in 2023 but is projected to increase to $577,459 in 2024. This represents a 3.6% increase from 2023 to 2024. Interestingly, federal interest rates have risen significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 27502 will continue to rise, albeit at a more moderate pace. Based on historical data and current economic factors, we project average home prices could reach approximately $650,000 by 2029. For average rent prices, the forecast suggests a continued upward trend, potentially reaching around $1,800 per month by 2029.
In summary, zip code 27502 has demonstrated strong growth in homeownership and property values over the past decade. Despite rising interest rates, the area has maintained a high rate of homeownership, indicating its desirability as a residential location. The rental market, while smaller, has seen increased average rents, reflecting the overall growth and demand in the area. Future trends point towards continued appreciation in both home values and rental prices, suggesting ongoing economic vitality in this North Carolina community.
