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Zip Code 28731: Resilient Homeownership and Rising Values in Flat Rock
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 28731, located in Flat Rock, North Carolina, presents an interesting case study in housing trends over the past decade. This area has experienced fluctuations in homeownership rates and significant changes in both average home prices and average rent prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 28731 has remained relatively stable, hovering around 74-75% in recent years. However, this stability masks some interesting trends when examined alongside average home prices. In 2013, the homeownership rate was 73% with an average home price of $225,116. By 2022, the homeownership rate had increased slightly to 74%, while the average home price had nearly doubled to $445,096. This suggests that despite rapidly increasing home values, residents of this area have maintained their ability to purchase homes.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2020, interest rates remained historically low, ranging from 0.09% to 0.38%. This period coincided with a steady increase in average home prices, from $225,116 in 2013 to $332,781 in 2020, while homeownership rates remained relatively stable. The low interest rates likely helped offset the impact of rising home prices on affordability, allowing homeownership rates to remain consistent.
Renter percentages and average rent prices have shown some interesting patterns. In 2013, 27% of residents were renters, with an average rent of $723. By 2022, the renter percentage had decreased slightly to 26%, while the average rent had increased to $923. The most significant jump in average rent occurred between 2020 and 2021, rising from $923 to $1,074, before settling back to $923 in 2022. This fluctuation could be attributed to various factors, including changes in local housing supply and demand, as well as broader economic conditions.
In 2023 and 2024, we see a continuation of the upward trend in average home prices, reaching $462,155 in 2023 and $479,249 in 2024. This represents a 7.6% increase from 2022 to 2024. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and could potentially influence homeownership rates in the coming years.
Looking ahead, based on historical trends and current market conditions, we can project some potential scenarios for the next five years. Average home prices in zip code 28731 are likely to continue their upward trajectory, albeit potentially at a slower pace due to higher interest rates. We might expect average home prices to reach around $550,000 by 2029. Average rent prices, which have shown more volatility, could stabilize and increase more gradually, potentially reaching around $1,200 by 2029.
In summary, zip code 28731 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The area has benefited from low interest rates for much of the past decade, which likely supported homeownership levels. However, with recent increases in both home prices and interest rates, the housing market in this zip code may face new challenges in maintaining affordability and homeownership rates in the coming years.
