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Zip Code 27612: Resilient Homeownership Amidst Rising Home Values in Raleigh Suburb
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 27612, located in Raleigh, North Carolina, has experienced notable changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has maintained a relatively stable balance between owners and renters, with a slight shift towards homeownership in recent years. Meanwhile, both average home prices and average rent prices have shown significant increases, reflecting the growing desirability of this Raleigh neighborhood.
The homeownership rate in zip code 27612 has remained relatively stable, with a slight upward trend in recent years. In 2013, the homeownership rate was 52%, and it increased to 53% by 2022. This modest increase coincides with a substantial rise in average home prices. In 2013, the average home price was $272,176, which steadily climbed to $535,476 by 2022, representing a 96.7% increase over nine years. This trend suggests that despite rising home prices, the area has maintained its appeal to potential homeowners, possibly due to its desirable location within Raleigh.
Federal interest rates have played a role in homeownership trends in zip code 27612. From 2013 to 2016, interest rates remained very low, hovering around 0.1% to 0.4%. During this period, the homeownership rate held steady at 52%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), the homeownership rate actually increased slightly to 53% in 2017 before settling back to 52% in 2019. This suggests that other factors, such as local economic conditions and housing market dynamics, may have had a more significant impact on homeownership rates in this area than interest rates alone.
The renter population in zip code 27612 has also experienced changes over the years. In 2013, 48% of residents were renters, and this percentage remained relatively stable through 2022, with a slight decrease to 47%. Despite this stability, average rent prices have increased significantly. In 2013, the average rent was $1,165, which rose to $1,349 by 2022, an increase of 15.8%. This rise in rent prices, coupled with the area's growing population (from 34,151 in 2013 to 38,086 in 2022), indicates a strong demand for rental properties in the zip code.
Looking at the most recent data, the average home price in zip code 27612 reached $548,971 in 2023 and further increased to $571,950 in 2024. This represents a 2.5% increase from 2022 to 2023 and a 4.2% increase from 2023 to 2024, indicating a continuing upward trend in home values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 27612 to continue their upward trajectory, potentially reaching around $650,000 to $700,000 by 2029. Average rent prices are also likely to increase, potentially surpassing $1,500 per month within the same timeframe. These projections are based on the historical trends observed in the area and assume relatively stable economic conditions.
In summary, zip code 27612 in Raleigh has demonstrated resilience in its housing market, with a slight increase in homeownership rates despite rapidly rising home prices. The area has maintained a balance between owners and renters, with both segments experiencing price increases. The continued rise in population density and housing prices suggests that this zip code remains an attractive location for both homeowners and renters, with potential for further growth and development in the coming years.
