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Zip Code 28277: Rising Home Values and Shifting Ownership in Charlotte's Dynamic 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 28277, located in Charlotte, North Carolina, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual shift from predominantly owner-occupied housing to an increasing proportion of renters, alongside substantial growth in both home values and rental costs.
The ownership percentage in zip code 28277 has shown a consistent downward trend from 2013 to 2022. In 2013, 72% of housing units were owner-occupied. This figure steadily declined to 63% by 2022, representing a 9 percentage point decrease over nine years. Concurrently, average home prices in the area have risen dramatically. In 2013, the average home price was $261,757. By 2022, this figure had more than doubled to $545,629, marking a 108% increase. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 28277. From 2013 to 2016, interest rates remained below 0.5%, coinciding with relatively stable homeownership rates around 70-72%. As interest rates began to rise in 2017, reaching 1.83% in 2018 and 2.16% in 2019, homeownership rates started to decline more rapidly. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging home purchases.
As homeownership rates declined, the percentage of renters in zip code 28277 increased from 26% in 2013 to 37% in 2022. This 11 percentage point increase in renter-occupied housing was accompanied by a significant rise in average rent prices. In 2013, the average rent was $1,456 per month. By 2022, it had risen to $1,700, an increase of 16.8% over nine years. The population of the zip code also grew during this period, from 61,463 in 2013 to 70,662 in 2022, potentially contributing to increased demand for rental properties and subsequent rent price increases.
In 2023 and 2024, the average home prices in zip code 28277 continued to rise, reaching $559,109 in 2023 and $587,494 in 2024. This represents a 2.5% increase from 2022 to 2023 and a further 5.1% increase from 2023 to 2024. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in zip code 28277 are likely to continue their upward trajectory 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 ongoing shift towards renting in the area. However, the rate of increase for both home prices and rents may moderate compared to the rapid growth seen in recent years.
In summary, zip code 28277 has experienced a significant shift in its housing landscape over the past decade. The area has seen a steady decline in homeownership rates, coupled with substantial increases in both average home prices and average rent costs. These trends, influenced by factors such as population growth and changing interest rates, have reshaped the local real estate market and are likely to continue impacting housing dynamics in the coming years.
