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Zip Code 29455: Rising Home Values and Ownership in Charleston's Growing Neighborhood
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
Charleston, South Carolina's zip code 29455 has shown remarkable growth and transformation over the past decade. This coastal area has experienced significant changes in population, homeownership rates, and property values, reflecting the dynamic nature of Charleston's real estate market.
The homeownership rate in zip code 29455 has seen a notable increase from 77% in 2013 to 85% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $336,798, which steadily climbed to $628,441 by 2022, representing an impressive 86.6% increase over nine years. This correlation suggests that despite rising prices, more residents in this area are choosing to invest in homeownership.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting pattern. From 2013 to 2021, when interest rates were generally low (ranging from 0.11% to 1.68%), homeownership rates increased from 77% to 82%. This aligns with the well-established trend that lower interest rates tend to encourage homeownership due to more affordable financing options. However, it's noteworthy that even as interest rates rose sharply to 1.68% in 2022, homeownership in this zip code continued to increase to 85%, suggesting other factors may be influencing this trend.
Conversely, the percentage of renters in zip code 29455 has decreased from 23% in 2013 to 15% in 2022. Despite this decline in the renter population, average rent prices have shown a general upward trend. In 2013, the average rent was $1,211, which increased to $1,497 by 2022, a 23.6% rise. This increase in rent prices, coupled with a decreasing renter population, could indicate a tightening rental market or a shift towards higher-end rental properties in the area.
Looking at the most recent data, the average home price in zip code 29455 reached $670,387 in 2023 and further increased to $703,332 in 2024. This represents a 6.7% year-over-year increase from 2022 to 2023 and a 4.9% increase from 2023 to 2024. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since 2007. Despite these higher interest rates, home prices in this zip code continue to rise, albeit at a slower pace than in previous years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 29455 will continue to increase, potentially reaching around $850,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. For rent prices, the forecast suggests a more moderate increase, potentially reaching an average of around $1,700 per month by 2029.
In summary, zip code 29455 in Charleston, South Carolina, has demonstrated strong growth in homeownership and property values over the past decade. The area has shown resilience in its housing market, with homeownership rates and home prices continuing to rise even in the face of increasing interest rates. While the rental market has shrunk in terms of population, rent prices have still trended upward. These trends paint a picture of a desirable and evolving neighborhood with a strong preference for homeownership and increasing property values.
