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Zip Code 28016: Rising Home Values and Stable Ownership in Bessemer City, 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 28016, located in Bessemer City, North Carolina, has experienced notable shifts in its housing market over the past decade. This area, known for its small-town charm and proximity to Charlotte, has seen fluctuations in homeownership rates and significant changes in average home and rent prices. The homeownership rate in zip code 28016 has remained relatively stable, hovering around 65% throughout most of the observed period. In 2013, the homeownership rate stood at 66%, and by 2022, it maintained the same percentage. However, there were slight fluctuations in between, with the lowest point of 63% in 2019 and the highest at 67% in 2021. Interestingly, these changes in homeownership rates corresponded with trends in average home prices. The average home price in 2013 was $80,301, which steadily increased to $216,737 by 2022, representing a substantial 170% increase over nine years.
Federal interest rates have played a role in homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained stable at around 65-66%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 63% in 2019. However, when interest rates dropped dramatically in 2020 and 2021 to 0.38% and 0.08% respectively, homeownership rebounded to 66% and 67%.
Renter percentages in zip code 28016 have shown an inverse relationship to homeownership rates, naturally. The renter population peaked at 37% in 2019, coinciding with the lowest homeownership rate. Average rent prices have steadily increased over the years, from $730 in 2013 to $832 in 2022, representing a 14% increase. This increase in rent prices, while significant, has been less dramatic than the rise in home prices over the same period.
In 2023, the average home price in zip code 28016 reached $225,402, showing continued growth from the previous year. The federal interest rate also saw a significant jump to 5.02% in 2023. Moving into 2024, the average home price has further increased to $231,988, while the federal interest rate has risen slightly to 5.33%. These figures indicate a continued upward trend in both home prices and interest rates.
Looking ahead, predictive models suggest that average home prices in zip code 28016 will continue to rise over the next five years, potentially reaching around $275,000 by 2029. Rent prices are also expected to increase, albeit at a slower rate, potentially reaching an average of $950 per month in the same timeframe.
In summary, zip code 28016 has demonstrated resilience in its housing market, with stable homeownership rates despite significant increases in average home prices. The inverse relationship between interest rates and homeownership rates has been evident, particularly in recent years. The area has seen substantial growth in property values, outpacing increases in rent prices, which may continue to influence the balance between owners and renters in the coming years.
