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Zip Code 28622: Rising Home Values and Ownership Trends in Rural 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 28622, located in Elk Park, North Carolina, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing average home prices, while ownership percentages have remained relatively stable with some minor variations. The homeownership rate in zip code 28622 has shown resilience, maintaining a high level throughout the observed period. In 2013, the ownership rate stood at 82%, and by 2022, it was at 78%. Despite this slight decrease, the area has consistently maintained a strong majority of owner-occupied housing units. Interestingly, as average home prices increased from $149,075 in 2019 to $257,203 in 2022, a substantial 72.5% rise, the ownership rate only saw a minor decline. This suggests that the local housing market has remained relatively accessible to homeowners despite rising prices.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2021 saw historically low interest rates, ranging from 0.08% to 2.16%. This low-interest environment likely contributed to maintaining high homeownership rates in zip code 28622, as it made mortgage financing more affordable. The slight dip in ownership percentage to 78% in 2022 coincided with a rise in interest rates to 1.68%, potentially making home purchases more challenging for some buyers.
Renter percentages in zip code 28622 have remained relatively low but showed some fluctuation. In 2013, renters made up 18% of occupied housing units, which decreased to 14% by 2021. However, there was a notable increase to 22% in 2022. Average rent prices have shown volatility, peaking at $920 in 2014 before declining to $657 in 2022. This represents a 28.6% decrease in average rent over eight years. The increase in renter percentage in 2022, despite lower average rents, may indicate a shift in housing preferences or economic factors affecting the local population.
As of 2024, the average home price in zip code 28622 has reached $293,073, marking a significant increase from previous years. This represents a 14.3% rise from the 2022 average price of $257,203. The current federal interest rate stands at 5.33%, which is substantially higher than the rates seen in the previous decade. This higher interest rate environment may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 28622 are likely to continue their upward trajectory over the next five years. Based on the historical data and current trends, we can expect average home prices to potentially reach around $350,000 to $375,000 by 2029. Average rent prices, which have shown a decreasing trend in recent years, may stabilize or see a modest increase, potentially reaching $700 to $750 per month in the next five years.
In summary, zip code 28622 has maintained a high rate of homeownership despite significant increases in average home prices. The area has experienced a substantial rise in property values, particularly from 2019 to 2024. Rental markets have shown more volatility, with decreasing average rents but a recent uptick in the percentage of renters. The interplay between federal interest rates, housing prices, and occupancy trends suggests a dynamic and evolving housing market in this North Carolina town.
