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Zip Code 28213: Average Home Values Soar Amid Shifting Ownership Trends in Charlotte
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 28213, located in Charlotte, North Carolina, has experienced significant changes in its real estate landscape over the past decade. This area has seen a gradual shift in homeownership rates and substantial increases in both average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 28213 has shown a slight downward trend over the years. In 2013, 52% of housing units were owner-occupied. This percentage gradually decreased to 49% by 2022, indicating a shift towards a more rental-oriented market. Conversely, the average home prices in this zip code have experienced substantial growth. In 2013, the average home price was $109,696. By 2022, this figure had nearly tripled to $318,074, representing a remarkable 190% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate declined from 52% to 49%. This trend continued even as interest rates began to rise moderately from 2017 to 2019. The slight increase in homeownership to 50% in 2020 and 2021 coincided with extremely low interest rates of 0.38% and 0.08% respectively, potentially encouraging some buyers to enter the market.
Renter percentages in zip code 28213 have generally increased over time, mirroring the decline in homeownership. The proportion of renter-occupied units rose from 47% in 2013 to 51% in 2022. This trend coincided with a steady increase in average rent prices. In 2013, the average rent was $1,053 per month. By 2022, it had risen to $1,211, an increase of about 15% over nine years. It's worth noting that the population in this zip code grew from 37,291 in 2013 to 44,937 in 2022, potentially contributing to increased demand for rental properties.
As of 2024, the average home price in zip code 28213 stands at $329,618, showing continued appreciation from the 2022 value. This increase occurs despite the federal interest rate rising to 5.33% in 2024, which typically would be expected to cool the housing market. The 2023 average home price was $320,142, indicating a year-over-year increase of about 3% from 2023 to 2024.
Looking ahead, predictive models suggest that average home prices in zip code 28213 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the trend towards renting. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply catches up with demand.
In summary, zip code 28213 has experienced a gradual shift towards a rental-dominated market, with homeownership rates declining slightly. Despite this, average home prices have seen dramatic increases, nearly tripling over a nine-year period. Average rent prices have also risen, though at a more moderate pace. The area's growing population and the interplay between interest rates and housing affordability will likely continue to shape these trends in the coming years.
