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Zip Code 28621: Stable Homeownership Amid Rising Home Values in Elkin, 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 28621, located in Elkin, North Carolina, is a community that has experienced notable shifts in its housing market over the past decade. With a land area of 70.34 square miles, this rural town has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local dynamics.
The homeownership rate in zip code 28621 has remained relatively stable, hovering around 70% throughout the 2013-2022 period. However, there have been subtle shifts that correlate with changes in average home prices. In 2013, the homeownership rate was 71% with an average home price of $104,619. As average home prices steadily increased to $199,646 by 2022, the homeownership rate experienced minor fluctuations, ending at 71% in 2022. This suggests a resilient local housing market where rising prices have not significantly deterred homeownership.
Federal interest rates have played a role in shaping homeownership trends in zip code 28621. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which coincided with a slight decrease in homeownership from 71% to 67%. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates rebounded to 71%. This counter-intuitive trend may indicate that local factors, such as employment opportunities or housing supply, had a stronger influence on homeownership than national interest rates.
Renter percentages and average rent prices in zip code 28621 have shown an inverse relationship to homeownership trends. The renter-occupied percentage increased from 29% in 2013 to a peak of 33% in 2016 and 2018, corresponding with average rent prices rising from $614 to $647 during this period. However, by 2022, the renter percentage had decreased back to 29%, despite average rent reaching $611. This suggests that other factors, such as local economic conditions or housing availability, may have influenced renting decisions more than rent prices alone.
In 2023 and 2024, the average home prices in zip code 28621 continued to rise, reaching $210,824 in 2023 and $213,286 in 2024. This represents a significant increase from the 2022 average of $199,646. Concurrently, federal interest rates have also increased substantially, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 28621 may continue to increase over the next five years, albeit at a more moderate pace. The rate of increase is expected to slow down compared to the sharp rises seen in recent years. Average rent prices are also projected to rise gradually, potentially reaching around $750-$800 by 2029. However, these predictions are subject to various economic factors and local market conditions.
In summary, zip code 28621 has demonstrated a relatively stable housing market with resilient homeownership rates despite rising home prices. The interplay between federal interest rates, local economic conditions, and housing affordability has shaped the community's housing landscape. As the area moves forward, balancing homeownership opportunities with rental options will be crucial for maintaining a diverse and accessible housing market for residents of Elkin.
