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Ardmore, Alabama: Rising Home Values and Stable Ownership in a Resilient Market
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
Ardmore, a town in Alabama, has experienced significant fluctuations in its housing market over the past decade. This small community, nestled near the Tennessee border, has seen notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local demographic shifts.
The homeownership rate in Ardmore has remained relatively stable, hovering around 70% throughout most of the observed period. However, there have been some fluctuations, with the rate reaching a high of 74% in 2018 and 2022, and a low of 68% in 2019. Interestingly, these changes in homeownership rates have coincided with trends in average home prices. In 2013, when the homeownership rate was 72%, the average home price was $120,447. As home prices steadily increased, reaching $233,864 in 2022, the homeownership rate also rose to 74%, suggesting that rising property values did not significantly deter homeownership in Ardmore.
The relationship between federal interest rates and homeownership rates in Ardmore presents an intriguing pattern. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.09% to 0.4%), homeownership rates in Ardmore actually decreased slightly from 72% to 69%. However, as interest rates began to rise more significantly from 2017 onwards, homeownership rates in Ardmore showed resilience, even increasing to 74% by 2022 despite the interest rate reaching 1.68%. This suggests that local factors may have played a more significant role in homeownership decisions than national interest rate trends.
Renter percentages in Ardmore have generally mirrored the inverse of homeownership rates, ranging from 26% to 32% over the observed period. Average rent prices have shown a general upward trend, albeit with some fluctuations. In 2013, the average rent was $523, which increased to $743 by 2022, representing a 42% increase over nine years. Interestingly, the highest renter percentage (32%) was observed in 2019 when the average rent was $621, suggesting that other factors beyond rent prices, such as job market conditions or housing availability, may influence renting decisions in Ardmore.
In 2023, the average home price in Ardmore reached $239,536, continuing the upward trend seen in previous years. This increase occurred despite a significant rise in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has further increased to $244,460, while the federal interest rate has risen slightly to 5.33%. These figures indicate a resilient housing market in Ardmore, with home prices continuing to appreciate even in the face of higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Ardmore may continue to rise over the next five years, albeit at a potentially slower rate due to the higher interest rate environment. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall appreciation of real estate values in the area.
In summary, Ardmore's housing market has demonstrated resilience and growth over the past decade. Despite fluctuations in federal interest rates and economic conditions, homeownership rates have remained relatively stable, while both home prices and rent prices have shown significant appreciation. The town's ability to maintain high homeownership rates even as property values increase suggests a strong local economy and sustained demand for housing in this Alabama community.
