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Zip Code 27592: Rising Home Values and Stable Ownership in Fuquay-Varina, 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 27592, 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 27592 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 83%, and by 2022, it had increased slightly to 85%. During this period, average home prices in the area saw substantial growth. In 2013, the average home price was $178,813, and by 2022, it had risen dramatically to $390,766, representing a 118.5% increase over nine years. This significant appreciation in home values did not seem to have a major impact on homeownership rates, suggesting strong local demand and potentially favorable economic conditions for homebuyers in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 27592. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained steady at around 83-84%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), there was a slight dip in homeownership to 81% in 2017, but it quickly recovered to 84% by 2019. The ultra-low interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with a stable homeownership rate of 84%, likely supporting continued home purchases despite rising prices.
Renter percentages in zip code 27592 have shown some variability, ranging from 11% in 2015 to 17% in 2021. Interestingly, average rent prices have generally increased over time, with some fluctuations. In 2013, the average rent was $886, rising to $1,127 in 2021, an increase of 27.2%. However, in 2022, there was a notable decrease in average rent to $891, despite the renter percentage remaining relatively stable at 15%. This drop in rent prices could be attributed to various factors, including increased housing supply or changes in local economic conditions.
Looking at the most recent data, the average home price in zip code 27592 continued to rise in 2023, reaching $396,105, and further increased to $402,733 in 2024. This represents a modest growth of 3.1% from 2022 to 2024. Notably, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying activity and potentially affect homeownership rates in the coming years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 27592 will continue to increase, albeit at a more moderate pace compared to the rapid growth seen in recent years. The average home price could potentially reach around $450,000 to $475,000 by 2029. Average rent prices are also expected to rise, possibly returning to and surpassing the 2021 peak, with projections suggesting they could reach $1,200 to $1,300 per month by 2029.
In summary, zip code 27592 has demonstrated resilience in its housing market, with consistently high homeownership rates despite significant increases in average home prices. The area has seen substantial property value appreciation, potentially benefiting long-term homeowners. While rent prices have generally trended upward, recent fluctuations suggest a dynamic rental market. The interplay between federal interest rates, home prices, and homeownership rates highlights the complex factors influencing the local housing market. As the area continues to grow and evolve, these trends will likely shape the future of housing in Fuquay-Varina.
