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Zip Code 28445: Surf City's Surging Home Values and Ownership Rates
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 28445, located in Surf City, North Carolina, has experienced significant changes in homeownership rates and property values over the past decade. This coastal area has seen a notable increase in population and a shift towards higher homeownership rates, accompanied by substantial growth in average home prices.
The trend in homeownership rates in zip code 28445 shows a steady increase from 66% in 2013 to 80% in 2022. This rise in homeownership coincides with a dramatic increase in average home prices, which grew from $241,668 in 2013 to $501,106 in 2022, representing a 107% increase over nine years. The most significant jump occurred between 2020 and 2022, with average home prices surging by 54% from $324,794 to $501,106.
Federal interest rates have played a role in shaping homeownership trends in this area. The period of historically low interest rates from 2013 to 2021, ranging from 0.08% to 0.40%, likely contributed to the increased homeownership rates. As interest rates remained low, financing became more accessible, potentially encouraging more residents to purchase homes rather than rent.
Conversely, the percentage of renters in zip code 28445 decreased from 33% in 2013 to 20% in 2022. Despite this decline in the renter population, average rent prices remained relatively stable, fluctuating between $1,174 and $1,242 from 2013 to 2022. The stability in rent prices, despite the decreasing renter population, could be attributed to the overall population growth in the area, which increased from 5,415 in 2013 to 9,160 in 2022.
Looking at the most recent data, average home prices in zip code 28445 continued to rise, reaching $526,788 in 2023 and $527,048 in 2024. This represents a 5.1% increase from 2022 to 2023 and a marginal 0.05% increase from 2023 to 2024, indicating a potential slowdown in the rapid price growth observed in previous years. Notably, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and property values.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 28445 may continue to increase but at a more moderate pace, potentially reaching around $600,000 by 2029. This projection takes into account the recent slowdown in price growth and the higher interest rate environment. Average rent prices are expected to remain relatively stable, potentially increasing slightly to around $1,300 per month by 2029, assuming the current balance between housing supply and demand remains consistent.
In summary, zip code 28445 has experienced a significant shift towards homeownership, with a corresponding surge in average home prices over the past decade. The area has seen substantial population growth, which has likely contributed to the stability of rent prices despite a decreasing renter population. Recent data suggests a potential moderation in home price growth, which may be influenced by rising interest rates. The future of this coastal real estate market will likely depend on the interplay between population growth, economic factors, and broader housing market trends.
