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Zip Code 27560: Rising Home Values and Shifting Ownership in Morrisville's Rapidly Growing Community
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 27560, located in Morrisville, North Carolina, has experienced significant changes in its housing market over the past decade. This area has seen substantial population growth, accompanied by fluctuations in homeownership rates and increasing average home and rent prices. The housing landscape in this zip code has evolved considerably, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 27560 has shown a slight decline over the years. In 2013, the percentage of owner-occupied homes was 49%, which decreased to 46% by 2022. This trend coincides with a substantial increase in average home prices. The average home price in 2013 was $248,547, more than doubling to $515,430 by 2022. This significant rise in home prices may have contributed to the decrease in homeownership rates, as affordability became a growing concern for potential buyers.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), the homeownership rate remained relatively stable at around 49-50%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate started to decline. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 27560 has increased over time, with the percentage of renter-occupied homes rising from 50% in 2013 to 54% in 2022. This shift towards renting coincides with a steady increase in average rent prices. In 2013, the average rent was $1,330, which grew to $1,571 by 2022, representing an 18% increase over nine years. The rising rent prices, coupled with the growing population (from 24,434 in 2013 to 40,966 in 2022), suggest a strong demand for rental properties in the area.
Looking at the most recent data, the average home price in zip code 27560 slightly decreased from $515,430 in 2022 to $509,398 in 2023, but then increased to $524,055 in 2024. This recent uptick in home prices occurs despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to slow down home price growth.
Applying predictive models to forecast 5-year trends, average home prices in zip code 27560 are anticipated to continue rising, albeit at a more moderate pace than seen in recent years. The average home price is projected to reach approximately $575,000 by 2029. For rent prices, the forecast suggests a continued upward trend, with average rents potentially reaching around $1,800 per month by 2029.
In summary, zip code 27560 has experienced a shift towards a renter-majority market, with homeownership rates declining slightly as home prices have more than doubled since 2013. The area has seen consistent population growth, driving demand for both owned and rented properties. Despite recent high interest rates, home prices have shown resilience, and both home and rent prices are expected to continue their upward trajectory in the coming years, reflecting the area's ongoing attractiveness and economic vitality.
