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Zip Code 28386: Rising Home Values and Ownership in Rural North Carolina
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 28386, located in Dundarrach, North Carolina, has experienced significant changes in its housing market over the past decade. This rural area has seen a notable shift in homeownership rates and property values, reflecting broader economic trends and local demographic changes.
The homeownership rate in zip code 28386 has shown a steady increase from 2013 to 2022. In 2013, 67% of residents owned their homes, and this figure rose to 76% by 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. In 2019, the average home price was $76,953, which then rose dramatically to $110,335 by 2022, representing a 43.4% increase over just three years.
The relationship between federal interest rates and homeownership rates in this area is noteworthy. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 2.16%, homeownership rates increased. This correlation suggests that the favorable lending environment may have encouraged more residents to purchase homes. The sharp increase in homeownership from 73% in 2019 to 76% in 2022 occurred despite a slight rise in interest rates, indicating other factors such as local economic conditions may have also played a role.
Conversely, the percentage of renters in zip code 28386 has decreased from 33% in 2013 to 24% in 2022. Despite this decline in the renter population, average rent prices have shown an upward trend. The average rent increased from $483 in 2013 to $622 in 2022, a 28.8% rise. This increase in rent prices, coupled with a decreasing renter population, suggests a tightening rental market, possibly due to a reduction in available rental properties as more homes transitioned to owner-occupied status.
In 2023 and 2024, the housing market in zip code 28386 continued its upward trajectory. The average home price reached $114,258 in 2023 and further increased to $117,498 in 2024, representing a 3.5% and 6.5% year-over-year growth, respectively. This growth occurred despite federal interest rates climbing to 5.02% in 2023 and 5.33% in 2024, indicating a resilient local housing market.
Looking ahead, predictive models suggest that the average home prices in zip code 28386 will 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 the ongoing trend of rising property values and potentially limited rental inventory. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply dynamics.
In summary, zip code 28386 has experienced a significant shift towards homeownership, with rising property values and increasing average rents. The area has shown resilience in its housing market, with continued growth even in the face of rising interest rates. These trends reflect a changing local landscape where homeownership has become increasingly prevalent, potentially driven by a combination of favorable lending conditions in earlier years and local economic factors.
