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Zip Code 28460: Rising Home Values and Ownership Trends in North Topsail Beach
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
North Topsail Beach, located in zip code 28460 in North Carolina, has experienced significant changes in homeownership rates and property values over the past decade. This coastal community has seen a notable shift towards increased homeownership and rising average home prices, particularly in recent years. The percentage of owner-occupied homes in North Topsail Beach has shown a steady upward trend. In 2013, the homeownership rate stood at 66%. By 2022, this figure had increased to 75%, representing a 9 percentage point increase over the decade. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $211,503. By 2022, it had risen dramatically to $372,641, marking a 76% increase over this period.
The relationship between federal interest rates and homeownership rates in North Topsail Beach appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.4%), homeownership rates fluctuated between 61% and 66%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates also increased, reaching 75% in 2022. This suggests that other local factors may have played a significant role in driving homeownership in this area.
Renter percentages in North Topsail Beach have decreased as homeownership has increased. In 2013, 34% of housing units were renter-occupied, but by 2022 this had fallen to 25%. Despite this decrease in the proportion of renters, average rent prices have generally trended upwards. In 2013, the average rent was $1,244 per month. By 2022, it had increased to $1,355, representing a 9% rise over the decade. The highest average rent was recorded in 2021 at $1,475 per month. This increase in rent prices, despite a decreasing renter population, could be attributed to the overall rise in property values and potentially increased demand for seasonal rentals in this coastal town.
In 2023 and 2024, the upward trend in average home prices continued in North Topsail Beach. The average home price reached $395,765 in 2023 and further increased to $400,195 in 2024. This represents a 6.2% increase from 2022 to 2023 and a modest 1.1% increase from 2023 to 2024. Notably, federal interest rates also saw a significant rise during this period, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates since 2007.
Looking ahead, based on the historical data and current trends, we can project that average home prices in North Topsail Beach may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $430,000 to $450,000 by 2029. Average rent prices may also continue their upward trajectory, potentially reaching $1,500 to $1,600 per month in the same timeframe.
In summary, North Topsail Beach has seen a significant shift towards homeownership, with a 9 percentage point increase from 2013 to 2022. This trend has been accompanied by a substantial rise in average home prices, which have increased by 76% over the same period. Despite a decrease in the proportion of renters, average rent prices have also risen, indicating strong demand in both the ownership and rental markets. The continuation of rising home prices into 2023 and 2024, even with higher interest rates, suggests ongoing attractiveness of this coastal community to homebuyers and investors.
