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Zip Code 27526: Fuquay-Varina's Rising Home Values and Stable Ownership Amidst Population Growth
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 27526, located in Fuquay-Varina, North Carolina, has experienced significant changes in its housing market over the past decade. This area has seen notable 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 27526 has remained relatively stable, with slight fluctuations over the years. In 2013, the homeownership rate stood at 81%, and by 2022, it was at 79%. During this period, average home prices in the area saw a substantial increase. In 2013, the average home price was $204,986, and by 2022, it had risen to $451,823, representing a 120% increase over nine years. This trend suggests that while homeownership rates remained relatively steady, the cost of purchasing a home in the area increased significantly.
Federal interest rates have played a role in shaping homeownership trends in zip code 27526. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 81%. As interest rates began to rise from 2017 onwards, there was a slight decline in homeownership rates, reaching 76% in 2020. However, despite rising interest rates, homeownership rebounded to 79% by 2022, indicating other factors may have influenced this trend.
Renter percentages in zip code 27526 have shown a slight increase over the years, moving from 19% in 2013 to 21% in 2022. Correspondingly, average rent prices have also risen. In 2013, the average rent was $1,108, and by 2022, it had increased to $1,297, representing a 17% rise. The population of the zip code grew from 40,872 in 2013 to 53,856 in 2022, a 32% increase. This population growth likely contributed to the upward pressure on both home prices and rent prices in the area.
In 2023 and 2024, the housing market in zip code 27526 showed some interesting developments. The average home price in 2023 was $447,287, a slight decrease from the 2022 price of $451,823. However, in 2024, the average home price increased again to $452,522. This occurred despite federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, which typically might discourage home buying.
Looking ahead, based on historical trends and current market conditions, we can forecast some potential 5-year trends for average home and rent prices in zip code 27526. Average home prices are likely to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $500,000 to $550,000 by 2029. Average rent prices are also likely to increase, potentially reaching $1,500 to $1,600 per month by 2029, driven by population growth and housing demand.
In summary, zip code 27526 has demonstrated resilience in its housing market, with stable homeownership rates despite significant increases in average home prices. The area has experienced substantial population growth, which has likely contributed to rising home and rent prices. Despite recent increases in interest rates, the housing market remains strong, with both ownership and rental sectors showing growth. The coming years are likely to see continued appreciation in both home values and rent prices, reflecting the area's attractiveness and economic vitality.
