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Zip Code 27837: Rising Home Values and Stable Ownership in Grimesland, 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 27837, located in Grimesland, North Carolina, has experienced notable shifts in its housing market over the past decade. This area has maintained a consistently high rate of homeownership, while average home prices and average rent have shown varying trends. The interplay between these factors provides insight into the local real estate dynamics.
The homeownership rate in zip code 27837 has remained relatively stable, with a slight decrease from 81% in 2013 to 78% in 2022. Despite this minor decline, the area still boasts a high proportion of owner-occupied housing. Concurrently, average home prices have shown a steady upward trajectory. In 2013, the average home price was $159,230, which increased to $265,749 by 2022, representing a substantial 66.9% growth over nine years.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with the period of highest homeownership in the zip code (81% in 2013-2014). As interest rates began to rise from 2017 onwards, there was a slight decrease in homeownership rates, settling at 78% by 2018 and remaining stable through 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in zip code 27837 has shown some fluctuations over the years. The percentage of renters increased modestly from 19% in 2013 to 22% in 2022. Average rent prices have varied, starting at $880 in 2013, dropping to $784 in 2014, and then rising to $874 by 2022. Interestingly, the highest average rent of $888 was recorded in 2019, coinciding with a peak in the renter population at 23%. These trends suggest a complex relationship between rental demand and pricing in the area.
Looking at the most recent data, the average home price in zip code 27837 reached $284,917 in 2023 and further increased to $296,873 in 2024. This represents a significant jump of 11.7% from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may impact affordability and potentially influence future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 27837 will continue to rise, potentially reaching around $350,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, the forecast suggests a more moderate increase, potentially reaching approximately $950 per month by 2029, assuming the current economic conditions and housing demand patterns persist.
In summary, zip code 27837 has maintained a strong homeownership rate despite rising average home prices. The area has experienced significant appreciation in property values, with a 66.9% increase in average home prices from 2013 to 2022. While the rental market has shown some fluctuations, it has remained relatively stable in recent years. The sharp rise in interest rates in 2023 and 2024, coupled with continuing increases in home prices, may present new challenges for potential homebuyers in the coming years. However, the area's consistent high homeownership rate suggests a resilient local housing market.
