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Zip Code 27920: Buxton's Rising Home Values and Ownership Amidst Coastal Appeal
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 27920, located in Buxton, North Carolina, has experienced significant fluctuations in homeownership rates and housing prices over the past decade. This coastal community has seen a general trend of increasing average home prices, while ownership percentages have varied considerably.
The homeownership rate in Buxton has shown notable changes from 2013 to 2022. In 2013, the ownership rate stood at 73%, then peaked at 79% in 2014. However, it experienced a decline to 64% by 2019, before rebounding to 85% in 2022. This substantial increase in homeownership coincides with a significant rise in average home prices. The average home price in 2013 was $255,935, and by 2022, it had risen to $430,607, representing a 68.2% increase over this period.
Federal interest rates have played a role in these homeownership trends. From 2013 to 2016, interest rates remained low, hovering around 0.1% to 0.4%, which likely contributed to the high homeownership rates during this period. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), we observed a corresponding decrease in homeownership percentages. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) appears to have stimulated a resurgence in homeownership, reaching 85% by 2022 despite rising home prices.
Renter percentages in Buxton have inversely mirrored homeownership rates, ranging from a low of 15% in 2022 to a high of 36% in 2019. Interestingly, average rent prices have not always aligned with these fluctuations. In 2013, the average rent was $1,039, which increased to $1,173 in 2014. However, rent prices then decreased to $848 in 2017, despite an increase in the renter population. By 2021, average rent had climbed to $1,405, before dropping slightly to $1,046 in 2022. These variations in rent prices may be influenced by factors such as local economic conditions and housing supply changes.
Looking at the most recent data, the average home price in Buxton continued to rise, reaching $450,388 in 2023 and $453,043 in 2024. This represents a 5.3% increase from 2022 to 2024. Notably, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Buxton will continue to rise, albeit at a more moderate pace. By 2029, average home prices could reach approximately $525,000 to $550,000, assuming current economic conditions and growth patterns persist. For rent prices, the forecast suggests a potential increase to around $1,300 to $1,400 per month by 2029, factoring in historical fluctuations and the area's desirability.
In summary, Buxton (27920) has demonstrated resilience in its housing market, with a strong rebound in homeownership rates despite rising home prices. The interplay between federal interest rates, homeownership percentages, and housing costs highlights the dynamic nature of this coastal real estate market. As the community continues to evolve, it will be crucial to monitor these trends and their impact on both homeowners and renters in the area.
