Loading Content...
Zip Code 27503: Steady Home Values and High Ownership Rates in Durham's Suburban Enclave
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 27503, located in Durham, North Carolina, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a generally high rate of homeownership, with some fluctuations, alongside a steady increase in average home prices.
The homeownership rate in zip code 27503 has remained relatively stable, albeit with some variations. In 2013, the homeownership rate was 92%, which slightly decreased to 89% by 2022. During this period, average home prices in the area saw a substantial increase. In 2013, the average home price was $205,580, which rose steadily to $431,901 by 2022, representing a 110% increase over nine years. This trend suggests that despite rising home prices, the area has maintained a high level of homeownership.
Federal interest rates have played a role in homeownership trends in the area. For instance, in 2020, when interest rates dropped to 0.38%, the homeownership rate in zip code 27503 was 87%, slightly lower than previous years. However, as interest rates began to rise in 2022 to 1.68%, the homeownership rate increased to 89%. This counterintuitive trend might suggest that other local factors are influencing homeownership rates more strongly than national interest rates in this particular zip code.
Renter percentages in zip code 27503 have shown some fluctuation, ranging from 5% to 13% between 2013 and 2022. Interestingly, the highest renter percentage of 13% was observed in 2020, coinciding with the lowest average rent price of $1,457 during the period. By 2022, the renter percentage had decreased to 11%, with the average rent price slightly decreasing to $1,446. These figures indicate a complex relationship between renter percentages and average rent prices, possibly influenced by broader economic factors and local housing market conditions.
Looking at the most recent data, in 2023, the average home price in zip code 27503 reached $450,571, with interest rates rising sharply to 5.02%. In 2024, the average home price further increased to $468,589, while interest rates continued to climb to 5.33%. This data shows a continuing upward trend in both home prices and interest rates, which could potentially impact future homeownership rates and market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 27503 will continue to rise, potentially reaching around $550,000 by 2029. Average rent prices are also expected to increase, albeit at a slower rate, potentially reaching approximately $1,600 by 2029. These predictions are based on historical trends and current market conditions.
In summary, zip code 27503 has maintained a high homeownership rate despite significant increases in average home prices. The area has shown resilience in its housing market, with homeownership rates remaining above 87% throughout the observed period. The relationship between interest rates, homeownership, and rental markets in this zip code appears to be complex, with local factors potentially playing a significant role alongside broader economic trends. As home prices continue to rise, it will be crucial to monitor how these trends affect the accessibility and affordability of housing in the area.
