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Average Home Values and Ownership in Gordon: A City of Resilient Homeowners
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
Gordon, Alabama, is a small city that has experienced significant fluctuations in population and housing dynamics over the past decade. The city's homeownership rates have remained relatively high, averaging around 80% throughout most of the observed period. Average home prices and average rent prices have shown notable changes, reflecting the city's evolving real estate market.
The homeownership rate in Gordon has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate was 82%, and it decreased slightly to 78% by 2022. During this period, average home prices saw a substantial increase. While data for earlier years is not available, the average home price in 2021 was $116,989, rising to $131,485 in 2022, representing a 12.4% increase in just one year. This trend suggests that despite rising home prices, Gordon residents have maintained a strong preference for homeownership.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2020, interest rates remained historically low, ranging from 0.09% to 2.16%. This period of low interest rates coincided with the relatively stable and high homeownership rates in Gordon. The low-interest environment likely made mortgages more affordable, supporting the city's high rate of homeownership despite rising home prices.
Renter percentages in Gordon have fluctuated inversely to homeownership rates, ranging from 18% to 26% between 2013 and 2022. Average rent prices have shown considerable volatility during this period. In 2013, the average rent was $620, which increased to $775 in 2018, representing a 25% increase. However, rent prices then decreased to $590 in 2019 before rising again to $821 in 2022. These fluctuations in rent prices don't show a clear correlation with the percentage of renters, suggesting that other factors, such as local economic conditions or housing supply, may have influenced rental market dynamics.
In 2023, the average home price in Gordon was $130,664, showing a slight decrease from the previous year. However, in 2024, the average home price has increased to $135,360, indicating a recovery and continued growth in the housing market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Looking ahead, based on the observed trends and current market conditions, it's projected that average home prices in Gordon will continue to rise moderately over the next five years. The city's strong preference for homeownership, coupled with its growing population (from 966 in 2016 to 1,364 in 2022), suggests sustained demand for housing. Average rent prices are also expected to increase, albeit with potential fluctuations, as the rental market adjusts to changes in housing demand and supply.
In summary, Gordon has maintained a high rate of homeownership despite rising home prices and recent increases in interest rates. The city's real estate market has shown resilience, with both home prices and rent prices experiencing overall growth. The interplay between federal interest rates, local economic factors, and population growth will likely continue to shape Gordon's housing market in the coming years, with a trend towards increasing property values and potentially more diverse housing options to accommodate the growing population.
