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Zip Code 27805: Rising Home Values and Ownership Rates in Rural North Carolina
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 27805, located in Aulander, North Carolina, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area, spanning 94.04 square miles, has shown resilience in its housing market despite various economic challenges.
The homeownership rate in zip code 27805 has seen a significant increase in recent years. In 2013, the homeownership rate was 74%, which gradually decreased to 70% by 2018. However, there has been a remarkable upward trend since then, with the rate reaching 78% in 2022. This increase in homeownership coincides with a general upward trend in average home prices. The average home price in 2013 was $54,907, which steadily increased to $78,834 by 2022, representing a 43.6% increase over this period.
The relationship between federal interest rates and homeownership rates in this area is noteworthy. Despite the federal interest rate increasing from 0.13% in 2015 to 1.83% in 2018, the homeownership rate remained relatively stable at around 70-72%. Interestingly, as interest rates dropped to 0.08% in 2021, the homeownership rate surged to 78%, suggesting that lower interest rates may have encouraged more people to purchase homes in this area.
Regarding rental trends, the percentage of renters in zip code 27805 has fluctuated inversely to homeownership rates. The renter percentage peaked at 30% in 2017 and 2018 but has since decreased to 22% in 2022. Average rent prices have shown volatility, ranging from a high of $774 in 2017 to a low of $647 in 2019. The most recent data shows an average rent of $673 in 2022, which is lower than the 2021 figure of $785. This decrease in rent prices, coupled with the declining renter percentage, suggests a shift towards homeownership in the area.
Looking at the most recent data, the average home price in zip code 27805 continued its upward trajectory, reaching $79,833 in 2023 and further increasing to $85,435 in 2024. This represents a 7% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, from 5.02% in 2023 to 5.33% in 2024, which could potentially impact future homeownership trends.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 27805 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project the average home price could reach approximately $95,000 to $100,000 by 2029. For rent prices, the forecast suggests a moderate increase, potentially reaching an average of $750 to $800 per month by 2029, assuming stable economic conditions and continued population growth in the area.
In summary, zip code 27805 has demonstrated a strong trend towards homeownership, with rates increasing from 70% to 78% between 2018 and 2022. This shift has been accompanied by a steady increase in average home prices, rising from $54,907 in 2013 to $85,435 in 2024. The rental market has shown more volatility, with recent trends indicating a decrease in both renter percentage and average rent prices. The interplay between federal interest rates, homeownership rates, and housing prices will likely continue to shape the real estate landscape in this area in the coming years.
