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Zip Code 28461: Rising Home Values and Ownership Trends in Boiling Spring Lakes, NC
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 28461, located in Boiling Spring Lakes, North Carolina, has experienced significant demographic and real estate changes over the past decade. This area has seen a remarkable increase in homeownership rates and substantial growth in average home prices, making it an interesting case study for real estate trends.
The ownership percentage in zip code 28461 has shown a steady upward trend, increasing from 77% in 2013 to 85% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $251,845, which rose to $483,195 by 2022, representing a substantial 91.9% increase over nine years. This trend suggests a strong correlation between rising home values and increased homeownership rates in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 28461. From 2013 to 2016, interest rates remained relatively low, ranging from 0.11% to 0.40%. During this period, homeownership rates fluctuated slightly but remained generally stable. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates in the zip code actually increased from 79% to 82%. This trend continued even as interest rates dropped sharply in 2020 (0.38%) and 2021 (0.08%), with homeownership reaching 86% by 2021. This suggests that other factors, such as local economic conditions or housing market dynamics, may have had a stronger influence on homeownership rates in this area than national interest rates.
The renter percentage in zip code 28461 has decreased consistently, from 23% in 2013 to 15% in 2022. Interestingly, despite this decline in the renter population, average rent prices have generally increased. The average rent rose from $1,317 in 2013 to $1,390 in 2022, an increase of 5.5%. However, this increase was not steady, with some fluctuations observed. For instance, average rent peaked at $1,453 in 2021 before slightly decreasing in 2022. These trends suggest that even with a smaller renter population, demand for rental properties remained strong enough to support increasing rent prices.
In 2023 and 2024, the real estate market in zip code 28461 continued to evolve. The average home price reached $504,494 in 2023 and further increased to $512,981 in 2024, representing a 6.2% growth from 2022 to 2024. This continued appreciation occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These high interest rates typically make borrowing more expensive, yet the local housing market has shown resilience in maintaining price growth.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and rent prices for zip code 28461 over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $600,000 by 2029. Average rent prices are also likely to increase, albeit at a slower rate, possibly reaching approximately $1,600 per month in the same timeframe.
In summary, zip code 28461 has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. Despite fluctuations in federal interest rates and a decreasing renter population, both home prices and rent prices have generally trended upward. The area's ability to maintain price growth even in the face of rising interest rates suggests a robust local real estate market with sustained demand for housing.
