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Zip Code 28012: Rising Home Values and Changing Ownership Patterns in Belmont, 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 28012, located in Belmont, North Carolina, has experienced significant changes in its housing market over the past decade. This area, spanning 30.95 square miles, has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 28012 has shown a gradual decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate stood at 75%, but by 2022, it had decreased to 72%. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $173,082, which rose dramatically to $389,119 by 2022, representing a 124.8% increase over this period. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, ranging from 75% to 71%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates dipped to their lowest point of 69% in 2017. Interestingly, despite rising interest rates, homeownership rates showed a slight recovery to 72% by 2022, possibly indicating other factors influencing housing decisions in the area.
The renter population in zip code 28012 has shown an overall increase from 2013 to 2022, albeit with some fluctuations. In 2013, renters comprised 25% of the population, which increased to 28% by 2022. This trend correlates with changes in average rent prices. The average rent in 2013 was $895, which increased to $1,070 by 2022, a 19.6% rise. The most significant jump in average rent occurred between 2020 and 2021, from $1,024 to $1,130, coinciding with a period of rapid population growth from 23,408 to 25,525 residents.
In 2023 and 2024, the housing market in zip code 28012 continued to evolve. The average home price in 2023 reached $400,365, further climbing to $413,342 in 2024. This represents a 6.2% increase from 2022 to 2024. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, the highest levels since 2007. These high interest rates could potentially impact future homeownership rates and market dynamics.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and rent prices over the next five years. Average home prices could potentially reach around $475,000 to $500,000 by 2029, assuming a moderate annual growth rate of 3-4%. Average rent prices might increase to approximately $1,250 to $1,300 per month, considering a similar growth trajectory. However, these projections could be influenced by various factors including economic conditions, local development, and changes in federal interest rates.
In summary, zip code 28012 has experienced a notable decrease in homeownership rates coupled with significant increases in both average home prices and rent prices from 2013 to 2022. The area has also seen substantial population growth, particularly in recent years. The interplay between rising property values, changing interest rates, and demographic shifts has shaped a dynamic housing market in this North Carolina community. As we move forward, the trends suggest continued upward pressure on housing costs, potentially affecting affordability and homeownership rates in the coming years.
