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Average Home Values and Ownership in Zip Code 35049: Cleveland's Resilient Housing 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
Zip code 35049, located in Cleveland, Alabama, has experienced notable shifts in population, homeownership rates, and housing prices over the past decade. This area has seen a fluctuating population trend, with homeownership rates generally decreasing while average home prices have steadily increased.
The homeownership rate in zip code 35049 has shown a general decline from 2013 to 2022. In 2013, the area had a high homeownership rate of 85%, which gradually decreased to 74% by 2020. However, there was a slight recovery in recent years, with the rate increasing to 80% in 2022. During this period, average home prices in the area have consistently risen. In 2013, the average home price was $125,297, which increased to $217,810 by 2022, representing a substantial 73.8% increase over nine years.
The trend in homeownership rates appears to have been influenced by federal interest rates. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 84-85%. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.83% in 2018, homeownership rates started to decline, dropping to 78% by 2018. This trend suggests that rising interest rates may have made homeownership less affordable for some residents.
Renter percentages in zip code 35049 have generally increased as homeownership rates declined. In 2013, only 15% of residents were renters, but this percentage grew to 26% by 2020, before slightly decreasing to 20% in 2022. Interestingly, average rent prices have not shown a consistent upward trend despite the increase in renter population. Average rent peaked at $798 in 2013, dropped to $697 in 2018, and then rose again to $745 in 2022. This fluctuation in rent prices, despite an overall increase in renters, could be due to various factors including local economic conditions and housing supply.
Looking at the most recent data, the average home price in zip code 35049 decreased slightly from $217,810 in 2022 to $216,762 in 2023, and is projected to further decrease to $212,522 in 2024. This recent downturn in home prices coincides with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. These higher interest rates likely contribute to the cooling of home prices by making mortgages more expensive for potential buyers.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in zip code 35049 may experience a period of stabilization or slight decline in the short term, given the current high interest rate environment. However, as the area has shown long-term appreciation in home values, prices are likely to resume an upward trajectory in the medium to long term, albeit at a potentially slower pace than in previous years. Rent prices may see moderate increases as the rental market adjusts to changing homeownership rates and overall housing demand in the area.
In summary, zip code 35049 has experienced a gradual shift from a predominantly owner-occupied area to one with a growing renter population, although homeownership still remains high. Average home prices have shown significant appreciation over the past decade, but recent interest rate increases have begun to impact this trend. The interplay between federal interest rates, homeownership rates, and housing prices demonstrates the complex dynamics of the local real estate market in this Alabama town.
