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Zip Code 27713: Rising Home Values and Shifting Ownership 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 27713, located in Durham, North Carolina, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates and substantial increases in both average home prices and average rent prices.
The homeownership rate in zip code 27713 has shown an interesting trend over the years. In 2013, the percentage of owner-occupied homes stood at 57%. This figure gradually decreased to 53% by 2019, indicating a shift towards renting. However, there was a remarkable turnaround starting in 2020, with the homeownership rate jumping to 60% and further increasing to 61% in 2022. This recent uptick in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $190,126, which steadily increased to $270,802 by 2019. The market then saw a dramatic surge, with average home prices reaching $422,490 in 2022, representing a 122% increase from 2013.
The relationship between federal interest rates and homeownership rates in this zip code presents an intriguing pattern. Despite historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates actually decreased during this period. However, as interest rates began to rise from 2017 to 2019 (1% to 2.16%), homeownership rates stabilized around 53%. Interestingly, the sudden drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a significant increase in homeownership rates to 60% and 61% respectively, suggesting that extremely low rates may have encouraged more people to buy homes in this area.
Renter percentages and average rent prices have also shown notable trends. The percentage of renter-occupied homes increased from 40% in 2013 to 44% in 2019, before declining to 39% in 2022. Average rent prices have steadily increased over this period, rising from $1,213 in 2013 to $1,396 in 2022, a 15% increase. This trend occurred despite the growing population, which increased from 49,330 in 2013 to 60,863 in 2022, suggesting that rental demand remained strong even as the population grew.
Looking at the most recent data, the average home price in zip code 27713 slightly increased to $423,962 in 2023 and is projected to rise further to $437,335 in 2024. This continued appreciation occurs despite the significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These high interest rates would typically be expected to cool the housing market, yet prices continue to climb in this area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 27713 will continue to appreciate, albeit at a more moderate pace. The rate of increase is likely to slow down due to the current high interest rates, but the area's growing population and desirability may continue to drive demand. Average rent prices are also expected to increase steadily, potentially outpacing inflation, as the area's population growth and economic development attract more residents.
In summary, zip code 27713 has demonstrated resilience and growth in its housing market. The area has seen a recent surge in homeownership rates despite rising home prices, potentially driven by periods of low interest rates. The rental market has remained robust, with steadily increasing average rents. As we look to the future, this zip code is poised for continued growth in both home values and rental prices, reflecting its attractiveness as a residential area in Durham, North Carolina.
