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Zip Code 27613: Rising Home Values and Ownership Rates in Raleigh's Resilient Housing Market
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 27613, located in Raleigh, North Carolina, has experienced notable shifts in homeownership rates and property values over the past decade. This area has seen a general trend towards increased homeownership and rising average home prices, coupled with fluctuating average rent prices. The ownership percentage in zip code 27613 has shown a steady increase from 68% in 2013 to 74% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $289,141, which grew consistently year-over-year, reaching $557,558 in 2022. This represents a remarkable 92.8% increase in average home prices over this period. The most substantial annual increase occurred between 2020 and 2021, with average home prices jumping from $401,343 to $459,367, a 14.5% rise in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in this zip code. From 2013 to 2016, interest rates remained relatively low, ranging from 0.11% to 0.40%. During this period, homeownership rates held steady at around 68%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a slight increase in homeownership, reaching 70% by 2019. Interestingly, the sharp drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) coincided with a further boost in homeownership, climbing to 71% in 2020 and 73% in 2021. This aligns with the well-established trend that lower interest rates generally encourage homeownership due to more affordable financing options.
The renter percentage in zip code 27613 has inversely mirrored the homeownership trend, decreasing from 32% in 2014 to 26% in 2022. Despite this decline in the renter population, average rent prices have shown a significant upward trajectory. In 2013, the average rent was $1,190, which increased to $1,582 by 2022, representing a 32.9% rise over this period. The most substantial annual increase in rent occurred between 2017 and 2018, jumping from $1,285 to $1,465, a 14% increase. It's worth noting that despite the decreasing renter population, the overall population in the zip code has remained relatively stable, fluctuating between 41,000 and 42,500 residents throughout the observed period.
Looking at the most recent data, the average home price in zip code 27613 reached $566,906 in 2023 and further increased to $588,209 in 2024. This represents a 1.7% increase from 2022 to 2023, and a 3.8% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since 2007.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 27613 will continue to rise, albeit at a more moderate pace. Based on historical data and current economic factors, we project average home prices could reach approximately $650,000 to $700,000 by 2029. For average rent prices, the forecast suggests a continued upward trend, potentially reaching $1,800 to $1,900 per month by 2029.
In summary, zip code 27613 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The area has shown resilience in its housing market, with consistent growth in average home prices even during periods of economic uncertainty. The inverse relationship between homeownership and rental rates, coupled with rising average rent prices, suggests a competitive and dynamic housing market in this Raleigh neighborhood.
