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Auburn's Housing Market: Rising Prices Amidst Stable Ownership in a University City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Auburn, Alabama, a vibrant city known for being home to Auburn University, has experienced significant growth and dynamic shifts in its housing market over the past decade. From 2018 to 2022, Auburn saw a slight fluctuation in homeownership rates, while average home prices and average rent prices showed notable increases.
The homeownership rate in Auburn has remained relatively stable, with minor fluctuations between 48% and 50% from 2018 to 2022. During this same period, average home prices in Auburn experienced a substantial increase. In 2018, the average home price was $246,733, which rose to $333,823 by 2022, representing a 35% increase over four years. This trend suggests that while homeownership rates remained steady, the cost of purchasing a home in Auburn has become significantly higher.
Federal interest rates have played a role in shaping homeownership trends in Auburn. From 2018 to 2020, interest rates decreased from 1.83% to 0.38%, which typically encourages homeownership. However, Auburn's homeownership rate only increased slightly from 49% in 2018 to 50% in 2019, before returning to 49% in 2020. This suggests that other factors, such as rapidly increasing home prices, may have counteracted the potential positive impact of lower interest rates on homeownership.
Renter percentages in Auburn have mirrored the homeownership rates, fluctuating between 50% and 52% from 2018 to 2022. Average rent prices have shown an overall upward trend during this period. In 2018, the average rent was $827, which increased to $1,000 by 2022, representing a 20.9% increase. This rise in average rent prices coincided with a population growth from 65,737 in 2018 to 80,009 in 2022, suggesting that increased demand for housing may have contributed to the upward pressure on rent prices.
In 2023 and 2024, Auburn's housing market continued to evolve. The average home price in 2023 reached $351,643, and in 2024 it further increased to $364,895. This represents a 9.3% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the city.
Looking ahead, predictive models suggest that Auburn's housing market will likely continue its upward trajectory. Based on historical trends, average home prices could potentially reach around $400,000 within the next five years if the current growth rate persists. Average rent prices may also continue to rise, potentially reaching $1,200 to $1,300 per month in the same timeframe, assuming similar growth patterns continue.
In summary, Auburn has experienced a robust increase in both average home prices and average rent prices from 2018 to 2024, while homeownership rates have remained relatively stable. The city's population growth, coupled with rising property values, has contributed to a dynamic housing market. As Auburn continues to evolve, the interplay between homeownership rates, housing costs, and demographic changes will shape the city's residential landscape in the coming years.
