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Abbeville, Alabama: Rising Home Values Amidst Declining Ownership
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
Abbeville, Alabama, a small city in Henry County, is known for its agricultural heritage and has experienced fluctuations in its population and housing market over the past decade. The city has maintained a relatively stable homeownership rate, while average home prices have shown a gradual upward trend, and average rent prices have experienced some volatility. The homeownership rate in Abbeville has remained fairly consistent, ranging from 71% to 77% between 2013 and 2022. During this period, average home prices have generally increased. In 2013, the average home price was $94,697, which steadily rose to $142,264 by 2022, representing a 50% increase over nine years. This upward trend in home prices, coupled with the relatively stable homeownership rate, suggests that Abbeville's housing market has remained resilient despite some population fluctuations. Federal interest rates have played a role in homeownership trends in Abbeville. In 2013, when interest rates were at a low of 0.11%, the homeownership rate was 75%. As interest rates gradually increased to 1.68% by 2022, there was a slight decrease in homeownership to 71%. This aligns with the general trend that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Abbeville have shown a slight increase from 25% in 2013 to 29% in 2022. Interestingly, average rent prices have fluctuated during this period. In 2013, the average rent was $554, which decreased to $472 in 2015 before rising significantly to $691 in 2021. However, there was a slight decrease to $638 in 2022. These fluctuations in rent prices could be attributed to changes in the local economy and housing demand, as the city's population decreased from 5,059 in 2013 to 4,375 in 2022.
Looking at the most recent data, the average home price in Abbeville for 2023 was $141,938, showing a slight decrease from 2022. However, in 2024, the average home price increased to $143,605. This recent uptick occurs despite the federal interest rate rising to 5.33% in 2024, which is significantly higher than the 1.68% rate in 2022. This suggests a strong local housing market that is resilient to higher interest rates.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Abbeville will continue to rise moderately, potentially reaching around $155,000 by 2029. Average rent prices are expected to stabilize and potentially increase slightly, possibly reaching $700 per month in the next five years. These predictions are based on historical trends and assume relatively stable economic conditions.
In summary, Abbeville's housing market has demonstrated resilience over the past decade, with steadily increasing average home prices and a relatively stable homeownership rate. The slight increase in renter percentages and fluctuating rent prices reflect the dynamic nature of the local housing market. Despite recent increases in federal interest rates, the housing market in Abbeville appears to remain strong, with continued growth in average home prices expected in the coming years.
