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Zip Code 28203 in Charlotte: Rising Home Values and Declining Ownership Rates
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 28203, located in Charlotte, North Carolina, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates, accompanied by substantial increases in both average home prices and average rent prices.
The ownership percentage in zip code 28203 has shown a consistent downward trend from 2013 to 2022. In 2013, homeownership stood at 36%, but by 2022, it had decreased to 28%. This decline in homeownership correlates with a dramatic increase in average home prices. In 2013, the average home price was $307,243, which rose steadily to reach $655,443 by 2022, representing a 113% increase over this period. The inverse relationship between falling homeownership rates and rising home prices suggests that the increasing cost of homes may be pricing out potential buyers in this area.
Federal interest rates have played a role in shaping homeownership trends in zip code 28203. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, fluctuating between 33% and 36%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, dropping from 33% in 2017 to 28% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The percentage of renters in zip code 28203 has shown a steady increase, rising from 61% in 2013 to 72% in 2022. This trend coincides with a significant increase in average rent prices. In 2013, the average rent was $1,065, which increased to $1,472 by 2022, representing a 38% rise. The growth in the renter population, from 11,697 in 2013 to 17,970 in 2022, may have contributed to the upward pressure on rent prices due to increased demand for rental properties.
Looking at the most recent data, the average home price in zip code 28203 reached $657,439 in 2023 and further increased to $684,448 in 2024. This represents a 4.1% increase from 2023 to 2024. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before 2008. These higher interest rates may continue to impact homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 28203 to continue their upward trajectory, potentially reaching around $800,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,800 per month within the same timeframe. These projections are based on the consistent growth patterns observed in the historical data.
In summary, zip code 28203 has experienced a significant shift towards a renter-majority population, with homeownership rates declining as both average home prices and average rent prices have increased substantially. The interplay between rising property values, increasing rents, and fluctuating interest rates has reshaped the housing landscape in this Charlotte neighborhood. As we move forward, the area is likely to see continued growth in property values and rental costs, potentially further impacting the balance between homeowners and renters in this dynamic urban market.
