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Zip Code 27965: Rising Home Values and Shifting Ownership Trends in Grandy, 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 27965, located in Grandy, North Carolina, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This coastal area has seen a general trend of increasing average home prices, while average rent prices and homeownership rates have shown more variability.
The homeownership rate in zip code 27965 has fluctuated over the years, with a notable increase in recent times. In 2013, the homeownership rate stood at 74%, and by 2022, it had risen to 79%. This 5 percentage point increase coincided with a significant rise in average home prices. In 2017, the average home price was $185,687, and by 2022, it had climbed to $299,385, representing a substantial 61% increase over five years. This trend suggests that despite rising home prices, more residents in the area were able to transition into homeownership.
Federal interest rates have played a role in homeownership trends in zip code 27965. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable around 74-75%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 70% in 2019. However, when interest rates dropped significantly in 2020 (0.38%) and 2021 (0.08%), homeownership rebounded, reaching 79% by 2022 despite a rising interest rate of 1.68% that year.
Renter percentages and average rent prices in zip code 27965 have shown an interesting relationship. In 2013, the renter percentage was 26%, with an average rent of $1,165. By 2019, the renter percentage increased to 30%, corresponding with a rise in average rent to $1,316. However, by 2022, the renter percentage dropped significantly to 21%, while the average rent decreased to $1,185. This suggests that as average rents became more affordable, more residents may have transitioned to homeownership, particularly given the rise in homeownership rates during the same period.
Looking at the most recent data, average home prices in zip code 27965 continued to rise in 2023 and 2024, reaching $311,771 and $323,845 respectively. This represents a 4.1% increase from 2022 to 2023 and a further 3.9% increase from 2023 to 2024. Notably, federal interest rates also saw significant increases, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices continued to appreciate, indicating strong demand in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 27965 will continue to rise, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $375,000 by 2029. Average rent prices are expected to stabilize and potentially increase moderately, possibly reaching around $1,400 by 2029, assuming economic conditions remain stable and housing supply keeps pace with demand.
In summary, zip code 27965 has demonstrated resilience in its housing market, with increasing homeownership rates despite rising home prices. The interplay between federal interest rates, homeownership, and rental markets has been evident, with recent trends favoring homeownership. As the area continues to evolve, it will be crucial to monitor how these trends develop, particularly in light of the recent significant increases in both home prices and interest rates.
