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Zip Code 28431: Rising Home Values and Homeownership in Chadbourn, 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 28431, located in Chadbourn, North Carolina, presents an interesting case study of housing market dynamics in a small town setting. Over the past decade, this area has experienced fluctuations in homeownership rates and property values, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 28431 has shown a gradual increase over the years, rising from 68% in 2013 to 72% in 2022. This upward trend in homeownership coincides with a significant appreciation in average home prices. In 2013, the average home price in the area was $88,576, which steadily climbed to $151,326 by 2022, representing a remarkable 70.8% increase over this period. This correlation suggests that rising property values may have incentivized more residents to invest in homeownership, potentially viewing real estate as a lucrative long-term investment.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 28431. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the initial increase in homeownership from 68% to 69%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, the homeownership rate continued to climb, reaching 72%. This suggests that despite increasing borrowing costs, other factors such as local economic conditions and the perception of real estate as a stable investment may have sustained the demand for homeownership in this area.
Renter percentages in zip code 28431 have inversely mirrored the homeownership trends, decreasing from 31% in 2016 to 28% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $547, which increased to $693 in 2019, before experiencing a slight dip to $689 in 2022. This fluctuation in rent prices, coupled with the declining renter population, suggests a complex interplay of factors affecting the rental market, possibly including changes in local employment opportunities or shifts in housing preferences.
The year 2023 saw a continuation of the upward trend in average home prices in zip code 28431, reaching $161,524. This represents a 6.7% increase from 2022, indicating sustained demand in the local housing market. However, 2024 has witnessed a slight correction, with average home prices decreasing to $155,217, a 3.9% decline from the previous year. This recent downturn coincides with a significant increase in federal interest rates, which rose to 5.33% in 2024, potentially impacting affordability and cooling the market slightly.
Looking ahead, predictive models suggest that average home prices in zip code 28431 may continue to experience moderate growth over the next five years, albeit at a slower pace than observed in recent years. The average home price is projected to reach approximately $175,000 by 2029. Rent prices are expected to follow a similar trajectory, potentially increasing to around $800 per month by 2029, reflecting ongoing demand for rental properties despite the rising homeownership rates.
In summary, zip code 28431 has demonstrated a resilient and evolving housing market over the past decade. The area has seen a steady increase in homeownership rates, substantial appreciation in property values, and fluctuating rent prices. The recent slight downturn in home prices, coupled with rising interest rates, suggests a potential shift in market dynamics that will be important to monitor in the coming years. As the local population continues to change and economic factors evolve, the housing market in this zip code is likely to remain dynamic, presenting both opportunities and challenges for residents and investors alike.
