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Zip Code 27607: Rising Home Values and Shifting Ownership Trends Near NC State University
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 27607, located in Raleigh, North Carolina, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown a general trend of increasing property values and a slight shift towards homeownership in recent years. The homeownership rate in zip code 27607 has fluctuated but generally increased from 2013 to 2022. In 2013, the homeownership rate was 49%, and it reached its peak at 53% in 2020. This upward trend coincided with a substantial increase in average home prices. In 2013, the average home price was $323,233, and by 2022, it had risen dramatically to $649,800, representing a 101% increase over nine years. This trend suggests that despite rising home prices, more residents were able to purchase homes, possibly due to factors such as income growth or favorable lending conditions.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates increased from 49% to 51%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, even as interest rates began to rise more significantly from 2017 to 2020 (1.00% to 0.38%), homeownership rates continued to increase, reaching 53% in 2020. This suggests that other factors, such as local economic conditions or housing market dynamics, may have played a role in sustaining homeownership growth.
Renter percentages and average rent prices in zip code 27607 have shown an inverse relationship to homeownership rates. As homeownership increased, the percentage of renters decreased from 51% in 2013 to 47% in 2020, before stabilizing at 50% in 2022. Despite this slight decrease in the renter population, average rent prices have steadily increased. In 2013, the average rent was $1,120, and by 2022, it had risen to $1,317, a 17.6% increase. This trend suggests that even with a smaller pool of renters, demand for rental properties remained strong, possibly due to factors such as population growth or a preference for renting among certain demographics.
Looking at the most recent data, the average home price in zip code 27607 reached $669,942 in 2023 and further increased to $695,830 in 2024. This represents a 7.1% increase from 2022 to 2024, indicating continued strong growth in the local housing market. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 27607 to continue rising, potentially reaching around $800,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, the forecast suggests a more moderate increase, potentially reaching approximately $1,500 per month by 2029, assuming the current growth rate continues.
In summary, zip code 27607 has demonstrated a robust housing market with increasing homeownership rates, rapidly rising average home prices, and steadily increasing average rent prices. The area has shown resilience in maintaining homeownership growth even during periods of rising interest rates. The continued increase in both home prices and rent suggests strong demand for housing in this Raleigh neighborhood, likely driven by factors such as local economic growth and the area's desirability.
