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Zip Code 28516 in Beaufort, NC: Rising Home Values and Shifting Ownership in a Coastal Haven
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
Beaufort, North Carolina, zip code 28516, a coastal town with a rich maritime history, has experienced significant changes in its housing market over the past decade. The overall trend shows a slight decrease in homeownership, while average home prices have steadily increased, and average rent prices have fluctuated.
Homeownership rates in Beaufort peaked at 71% in 2017 but have since declined to 65% in 2022. This trend coincides with a substantial increase in average home prices, rising from $208,976 in 2010 to $363,916 in 2022, representing a 74% increase over 12 years. The most significant jumps occurred between 2020 and 2022, with annual increases of 19% and 18% respectively. This rapid appreciation likely contributed to the decrease in homeownership, as affordability became a growing concern for potential buyers.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2010 to 2015 saw historically low interest rates, hovering around 0.1% to 0.18%. During this time, homeownership rates in Beaufort remained relatively stable, ranging from 67% to 69%. As interest rates began to rise in 2016, reaching 1.83% by 2018, homeownership in Beaufort actually peaked at 71% in 2017, possibly due to buyers rushing to secure mortgages before rates increased further.
The percentage of renters in Beaufort has increased from 27% in 2017 to 35% in 2022. This rise in renters coincides with fluctuations in average rent prices. Average rent peaked at $904 in 2016 before declining to $785 in 2020, possibly due to economic uncertainties. However, average rent has since rebounded to $793 in 2022. The increase in renters despite relatively stable rent prices may indicate a shift in housing preferences or economic constraints preventing home purchases.
In 2023, average home prices in Beaufort reached $384,231, a 5.6% increase from 2022. This growth continued into 2024, with average home prices hitting $396,030. Notably, federal interest rates also rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with elevated home prices, are likely to impact affordability and could further influence homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in Beaufort may continue to rise, albeit at a slower pace. Over the next five years, we could see average home prices approach or exceed $450,000. Average rent prices are also expected to increase, potentially reaching $900-$950 per month by 2029. However, these projections assume a continuation of current economic conditions and could be influenced by various factors such as changes in local economic development, population growth, or shifts in housing policies.
In summary, Beaufort's housing market has shown resilience with steadily increasing average home prices despite fluctuations in homeownership rates. The recent sharp rise in federal interest rates, coupled with continued home price appreciation, may present challenges for potential homebuyers. Meanwhile, the rental market has seen growth in both the percentage of renters and average rent prices, indicating a dynamic shift in the local housing landscape.
