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Zip Code 28273: Rising Home Values and Shifting Ownership in Charlotte's Growing Neighborhood
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 28273, located in Charlotte, North Carolina, has experienced significant growth and change over the past decade. This area has seen a gradual shift in homeownership rates, alongside substantial increases in both average home prices and average rent prices. The interplay between these factors provides insight into the evolving real estate landscape of this Charlotte neighborhood.
The homeownership rate in zip code 28273 has shown a slight decline over the years, with some fluctuations. In 2013, the homeownership rate stood at 59%, but by 2022, it had decreased to 53%. This trend correlates with the substantial increase in average home prices during the same period. In 2013, the average home price was $142,257, which more than doubled to $361,538 by 2022. This dramatic rise in home prices may have made homeownership less attainable for some residents, contributing to the decrease in the ownership rate.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable, hovering around 52-54%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate showed slight fluctuations but generally remained in the 51-53% range. This suggests that while low interest rates may have helped maintain homeownership levels, other factors such as rapidly increasing home prices likely had a more significant impact on ownership rates in this zip code.
The renter population in zip code 28273 has grown alongside the increase in average rent prices. In 2013, 41% of residents were renters, with the average rent at $1,214. By 2022, the renter percentage had increased to 47%, while the average rent rose to $1,362. This trend suggests that despite rising rent prices, renting remained an attractive or necessary option for many residents. The population growth in the area, from 32,937 in 2013 to 48,124 in 2022, likely contributed to increased demand for rental properties, supporting both higher renter percentages and average rent prices.
Looking at more recent data, the average home price in zip code 28273 continued to rise, reaching $365,461 in 2023 and $376,391 in 2024. This represents a 1.1% increase from 2022 to 2023 and a further 3% increase from 2023 to 2024. Interestingly, federal interest rates also saw significant increases during this period, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with continued home price appreciation, may present challenges for potential homebuyers in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 28273 to continue their upward trajectory, albeit potentially at a more moderate pace due to higher interest rates. Average home prices could reach approximately $425,000 to $450,000 by 2029. Average rent prices are also likely to increase, potentially reaching $1,600 to $1,700 per month in the same timeframe, driven by population growth and demand for housing in the area.
In summary, zip code 28273 has experienced a gradual shift towards a more balanced mix of homeowners and renters, with slightly declining homeownership rates and increasing renter percentages. This trend has occurred alongside substantial increases in both average home prices and average rent prices. The area's population growth has likely contributed to these trends, creating increased demand for both owned and rented housing. As the neighborhood continues to evolve, the interplay between housing costs, interest rates, and population growth will shape its real estate landscape in the coming years.
