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Zip Code 27712: High Homeownership and Rising Home Values in Durham, NC
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 27712, located in Durham, North Carolina, covers an area of 31.7 square miles and has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This suburban area demonstrates a robust housing market characterized by high homeownership rates and steadily increasing property values.
The homeownership rate in zip code 27712 has remained relatively stable, with a slight increase from 89% in 2016 to 92% in 2019, before settling at 89% in 2022. Average home prices have shown a consistent upward trend, rising from $195,633 in 2010 to $404,299 in 2022, representing a substantial 106.7% increase over this period. This trend suggests a strong correlation between rising home values and sustained high homeownership rates in the area.
Federal interest rates have played a significant role in homeownership trends. From 2010 to 2016, when interest rates were historically low (ranging from 0.1% to 0.4%), homeownership rates in the zip code remained high at around 90%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased slightly to 92%, possibly due to anticipation of future rate hikes encouraging purchases. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight decrease in homeownership to 90%, potentially due to economic uncertainties during the pandemic.
Renter percentages in zip code 27712 have fluctuated slightly but remained relatively low, ranging from 6% to 11% between 2013 and 2022. Average rent prices have shown an overall increasing trend, rising from $1,299 in 2013 to $1,350 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,443. The modest increase in rent prices, combined with the area's growing population (from 18,612 in 2010 to 22,781 in 2022), suggests a balanced rental market despite the high homeownership rate.
In 2023, the average home price in zip code 27712 reached $411,930, continuing the upward trend. The federal interest rate increased significantly to 5.02% in 2023. As of 2024, the average home price has further increased to $424,178, while the federal interest rate has risen to 5.33%. These figures indicate a continued strong housing market despite higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 27712 to continue their upward trajectory, potentially reaching around $500,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,600 per month within the same timeframe. These projections are based on historical trends and assume relatively stable economic conditions.
In summary, zip code 27712 demonstrates a robust housing market characterized by high homeownership rates and steadily increasing property values. The area has shown resilience to fluctuations in federal interest rates, maintaining strong homeownership levels even as rates have risen. The rental market, while smaller, has also seen modest growth in both prices and demand. The continued population growth and rising property values suggest that this zip code remains an attractive area for both homeowners and investors.
