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Zip Code 28803: Soaring Home Values and Ownership Trends in Asheville's Vibrant Arts Hub
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 28803, located in Asheville, North Carolina, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area, known for its vibrant arts scene and proximity to the Blue Ridge Mountains, has seen a dynamic shift in its housing market.
The ownership percentage in zip code 28803 has fluctuated over the years, showing a general downward trend from 57% in 2013 to 54% in 2022. This decline in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $206,613, which steadily rose to $430,334 by 2022, representing a 108% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates in the zip code declined from 57% to 52%. This unexpected trend might be attributed to rapidly increasing home prices outpacing the benefits of low interest rates. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 50-51%.
Renter percentages in zip code 28803 have generally increased from 43% in 2013 to 46% in 2022, mirroring the decline in homeownership. This trend coincides with rising average rent prices, which increased from $1,107 in 2013 to $1,206 in 2022, a 9% increase. The population in this zip code also grew from 29,391 in 2013 to 32,696 in 2022, potentially contributing to increased demand for rental properties and subsequent rent increases.
In 2023 and 2024, the housing market in zip code 28803 continued to evolve. The average home price reached $449,433 in 2023 and further increased to $464,047 in 2024, representing a 7.8% growth over these two years. This occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and buyer demand.
Looking ahead, predictive models suggest that average home prices in zip code 28803 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the area's desirability. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, zip code 28803 has experienced a notable decrease in homeownership rates coupled with substantial increases in average home prices over the past decade. Renter percentages have risen alongside moderate increases in average rent prices. The recent surge in interest rates and continued growth in home prices suggest a challenging environment for potential homebuyers, which may further impact the balance between owners and renters in this Asheville neighborhood.
