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Addison, Alabama: Stable Homeownership Amidst Rising Home Values
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
Addison, Alabama is a small town located in Winston County. Known for its scenic beauty and close-knit community, Addison has experienced fluctuations in its housing market over the past decade. The town has maintained a consistently high rate of homeownership, while average home prices and average rent have shown varying trends.
Homeownership rates in Addison have remained relatively stable, ranging from 81% to 85% between 2013 and 2022. This high rate of homeownership coincides with fluctuations in average home prices. In 2013, the average home price was $127,272, which declined to $119,247 by 2015. However, prices began to rise again, reaching $183,420 in 2022. This represents a 44.4% increase from 2015 to 2022, despite minor fluctuations in homeownership rates during this period.
Federal interest rates have played a role in shaping homeownership trends in Addison. From 2013 to 2016, interest rates remained low, ranging from 0.09% to 0.4%. During this period, homeownership rates in Addison stayed above 80%. As interest rates began to rise from 2017 to 2019, reaching 2.16%, homeownership rates remained stable, likely due to the established nature of the community and the relatively affordable housing market compared to larger urban areas.
Renter percentages in Addison have varied slightly, ranging from 15% to 19% between 2013 and 2022. Average rent prices have shown an overall upward trend during this period. In 2013, the average rent was $452, which increased to $593 by 2018, representing a 31.2% rise. However, rent prices then experienced some volatility, decreasing to $463 in 2021 before rising slightly to $484 in 2022. These fluctuations in rent prices occurred while the renter percentage remained relatively stable, suggesting that other factors, such as local economic conditions or housing supply, may have influenced rent prices more than demand from renters.
In 2023, the average home price in Addison decreased slightly to $177,765, and in 2024, it further decreased marginally to $177,515. This slight downturn in home prices coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to a cooling effect on the local housing market.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in Addison may experience modest growth over the next five years. The town's consistent appeal and stable community could support a gradual increase in home values, potentially reaching around $190,000 to $200,000 by 2029. Average rent prices are also expected to see a moderate upward trend, potentially reaching $550 to $600 per month in the same timeframe, assuming continued stability in the local economy and housing demand.
In summary, Addison's housing market is characterized by high homeownership rates and gradual increases in both average home prices and rent over the past decade. The town has shown resilience to economic fluctuations, maintaining a strong base of homeowners despite changes in the broader economic landscape. As Addison moves forward, it is likely to continue its pattern of steady, moderate growth in both the homeownership and rental sectors, reflecting its enduring appeal as a residential community in Alabama.
