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Zip Code 28120: Rising Home Values and Stable Ownership in Mount Holly, 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
Mount Holly, North Carolina, located in zip code 28120, has experienced significant changes in its housing market over the past decade. This suburban area has seen steady growth in population and housing prices, with notable shifts in homeownership rates and rental costs. The homeownership rate in Mount Holly has remained relatively stable, fluctuating between 72% and 75% from 2013 to 2022. During this period, average home prices have shown a substantial increase. In 2013, the average home price was $147,772, which steadily rose to $347,393 by 2022, representing a remarkable 135% increase over nine years. This upward trend in home prices did not significantly impact homeownership rates, suggesting a resilient local housing market and strong demand for ownership despite rising costs.
Federal interest rates have played a role in shaping homeownership trends in Mount Holly. From 2013 to 2016, when interest rates were exceptionally low (between 0.09% and 0.40%), homeownership rates remained steady at around 72-73%. As interest rates began to rise from 2017 to 2019 (1.00% to 2.16%), homeownership rates slightly increased to 74%, possibly due to buyers rushing to secure mortgages before rates climbed further. The sudden drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a brief dip in homeownership to 72% in 2020, followed by a return to 73% in 2021, likely influenced by the broader economic uncertainties of the period.
Renter percentages in Mount Holly have remained relatively consistent, ranging from 25% to 28% between 2013 and 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $788, which increased to $1,031 by 2021, representing a 31% rise. However, 2022 saw a notable decrease to $844, possibly due to market adjustments or increased housing supply. The population growth from 20,084 in 2013 to 22,852 in 2022 may have contributed to the general upward pressure on rent prices, as demand for rental properties increased with the growing population.
In 2023, the average home price in Mount Holly reached $353,700, showing continued growth from the previous year. The federal interest rate for 2023 was 5.02%, significantly higher than in recent years. Moving into 2024, the average home price has further increased to $361,522, while the federal interest rate has risen slightly to 5.33%. These figures indicate a continuing trend of rising home values despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Mount Holly are likely to continue their upward trajectory over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices may also see gradual increases, driven by population growth and the overall appreciation of the local real estate market. However, the rate of increase for both home prices and rents may be tempered by economic factors and potential market corrections.
In summary, Mount Holly's housing market has demonstrated robust growth in home values over the past decade, with homeownership rates remaining stable despite significant price increases. The rental market has shown more volatility in recent years, with a sharp rise followed by a recent decline. The interplay between federal interest rates, population growth, and local economic factors continues to shape the housing landscape in this North Carolina city, pointing towards a dynamic and evolving market in the coming years.
