Loading Content...
Zip Code 28806: Average Home Values Soar in Asheville's Artistic Mountain Haven
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 28806, located in Asheville, North Carolina, has experienced significant changes in its real estate market over the past decade. This vibrant area, known for its thriving arts scene and beautiful mountain landscapes, has seen shifts in homeownership rates, average home prices, and average rent prices. The overall trend indicates a slight decrease in homeownership, accompanied by substantial increases in both average home prices and average rent prices.
From 2013 to 2022, the homeownership rate in zip code 28806 gradually declined from 61% to 58%. During this same period, average home prices saw a dramatic increase, rising from $169,779 in 2013 to $387,699 in 2022, representing a remarkable 128% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained exceptionally low, hovering around 0.1% to 0.4%, during which time homeownership rates in zip code 28806 remained relatively stable at 60-61%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, a corresponding decline in homeownership rates to 58% was observed. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
As homeownership rates decreased, the percentage of renters in zip code 28806 naturally increased from 39% in 2013 to 42% in 2022. Concurrently, average rent prices rose significantly. In 2013, the average rent was $933, which increased to $1,004 by 2022, representing a 7.6% rise. The population of the zip code also grew during this period, from 38,754 in 2013 to 44,468 in 2022, potentially contributing to increased demand for rental properties and subsequent rent increases.
Recent data shows that average home prices in zip code 28806 continued to climb, reaching $405,407 in 2023 and $419,807 in 2024. This represents a further 8.3% 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 homeownership trends and affordability in the coming years.
Predictive models forecasting 5-year trends anticipate that average home prices in zip code 28806 will continue to rise, potentially reaching around $500,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,300 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 28806 has experienced a slight decrease in homeownership rates alongside substantial increases in both average home prices and average rent prices over the past decade. The inverse relationship between homeownership rates and property values, coupled with fluctuating interest rates, has shaped the local real estate market. As the area continues to grow and evolve, it's likely that these trends will persist, potentially leading to further changes in the housing landscape of this Asheville neighborhood.
