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Zip Code 28226: Rising Home Values and Ownership Rates in Charlotte's Resilient Housing Market
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 28226, located in Charlotte, North Carolina, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has shown a trend of increasing homeownership and rising average home prices, with some fluctuations in average rent prices.
The ownership percentage in zip code 28226 has seen a notable increase from 66% in 2015 to 70% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2015, the average home price was $313,239, which has risen dramatically to $575,551 by 2022, representing an impressive 83.7% increase over seven years. This trend suggests a strong correlation between rising home values and increasing homeownership rates in the area.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. Despite historically low interest rates from 2015 to 2021 (ranging from 0.08% to 1.83%), the homeownership rate only increased modestly from 66% to 70%. This suggests that while low interest rates may have contributed to the increase in homeownership, other factors such as rising home prices and local economic conditions also played significant roles in shaping the housing market in this area.
Renter percentages in zip code 28226 have decreased from 34% in 2015 to 30% in 2022, inversely mirroring the increase in homeownership. Average rent prices, however, have shown an upward trend, rising from $1,311 in 2015 to $1,438 in 2022, an increase of 9.7%. It's worth noting that the population in this zip code has remained relatively stable, increasing only slightly from 38,415 in 2015 to 37,851 in 2022, which may have contributed to the moderate rise in average rent prices.
In 2023 and 2024, the housing market in zip code 28226 continued to evolve. The average home price reached $598,545 in 2023 and further increased to $634,255 in 2024, representing a 6% year-over-year growth. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for some prospective homebuyers.
Looking ahead, based on the historical data and current trends, we can forecast the following 5-year trends for average home and rent prices in zip code 28226: Average home prices are projected to continue their upward trajectory, potentially reaching around $750,000 by 2029, assuming a similar growth rate to recent years. Average rent prices are expected to increase more moderately, potentially reaching approximately $1,700 per month by 2029, based on the historical growth rate.
In summary, zip code 28226 in Charlotte has demonstrated a strong housing market with increasing homeownership rates and rapidly appreciating home values. The area has maintained a high percentage of owner-occupied properties despite rising home prices, suggesting strong demand for housing in this location. While rent prices have also increased, the growth has been more moderate compared to home prices. The continued rise in both home prices and interest rates in 2023 and 2024 indicates a resilient housing market in this zip code, with potential for further growth in the coming years.
