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Acipco-Finley: Evolving Home Values and Ownership Amid Population Decline
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
Acipco-Finley, a neighborhood in Birmingham, Alabama, has experienced significant changes in its housing market over the past decade. This area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Acipco-Finley has shown considerable variability. In 2013, the neighborhood had a homeownership rate of 48%. This figure increased to 60% in 2016, representing a peak in owner-occupied housing. However, by 2022, the rate had declined to 43%, indicating a shift towards a renter-majority neighborhood. Concurrently, average home prices have shown a general upward trend. In 2013, the average home price was $23,797, which steadily increased to $60,865 by 2022, representing a substantial 155% increase over this period.
Federal interest rates have played a role in shaping homeownership trends in Acipco-Finley. The period from 2013 to 2016, when homeownership rates increased from 48% to 60%, coincided with historically low interest rates ranging from 0.11% to 0.40%. This likely made mortgages more affordable, encouraging home purchases. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, we observe a corresponding decline in homeownership rates, dropping to 43% in 2022.
Renter percentages in Acipco-Finley have generally mirrored the inverse of homeownership rates. In 2013, 52% of housing units were renter-occupied. This decreased to 40% in 2016 but rose again to 56% by 2022. Average rent prices have shown volatility over this period. In 2013, the average rent was $599, which increased to $754 in 2017, representing a 26% rise. However, by 2022, average rent had moderated to $632, still 5.5% higher than the 2013 level. These fluctuations in rent prices and renter percentages may be influenced by changes in the neighborhood's population, which decreased from 1,131 in 2013 to 851 in 2022.
Looking at the most recent data, the average home price in Acipco-Finley was $56,331 in 2023 and increased to $57,241 in 2024. This represents a modest 1.6% year-over-year increase. Notably, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may continue to impact homeownership trends in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Acipco-Finley may continue to rise moderately, potentially reaching around $65,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. For average rent prices, we expect a gradual increase, potentially reaching approximately $700 by 2029, considering the historical fluctuations and the current trend.
In summary, Acipco-Finley has experienced significant changes in its housing market dynamics. The neighborhood has shifted from a balanced mix of owners and renters to a renter-majority area, with homeownership rates declining despite rising average home values. The interplay between federal interest rates, local economic factors, and population changes has contributed to these trends. Moving forward, the neighborhood is likely to see continued moderate growth in both home prices and rents, with the potential for further shifts in the owner-renter balance depending on broader economic conditions and local market forces.
