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Average Home Values and Ownership in Zip Code 35061: A Decade of Resilience in Birmingham's 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 35061, located in Birmingham, Alabama, has experienced significant shifts in homeownership rates and property values over the past decade. This area, covering 1.29 square miles, has seen its population fluctuate, with 855 residents recorded in 2022. The trends in ownership percentages, average home prices, and average rent prices reveal an intriguing picture of the local real estate market.
The homeownership rate in zip code 35061 has shown resilience, maintaining relatively high levels throughout the observed period. In 2013, the homeownership rate stood at 80%, and despite some fluctuations, it remained strong at 81% in 2022. This stability in homeownership occurred alongside a substantial increase in average home prices. The average home price in 2013 was $27,993, which rose dramatically to $88,960 by 2022, representing a remarkable 217.8% increase over nine years.
Federal interest rates appear to have influenced homeownership rates in this zip code. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained above 80%. As interest rates began to rise more significantly from 2017 onwards, there was a slight dip in homeownership, reaching a low of 76% in 2019 when the federal interest rate was 2.16%. However, the area demonstrated resilience, with homeownership rebounding to 81% by 2022, despite rising interest rates.
Renter percentages in zip code 35061 have shown some variability, ranging from a low of 10% in 2015 to a high of 22% in 2019. Interestingly, average rent prices did not always move in tandem with renter percentages. For instance, in 2015, when the renter percentage was at its lowest (10%), the average rent was $1,062. By 2019, when the renter percentage peaked at 22%, the average rent had actually decreased to $930. This suggests that factors beyond supply and demand, such as local economic conditions or housing policies, may be influencing rent prices in this area.
In 2023 and 2024, we observe a slight cooling in the housing market of zip code 35061. The average home price decreased from $88,960 in 2022 to $85,562 in 2023, and further to $83,155 in 2024. This represents a 6.5% decrease over two years. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which likely contributed to the moderation in home prices.
Looking ahead, based on recent trends and current market conditions, we can project potential scenarios for the next five years. If the current trajectory continues, average home prices in zip code 35061 might stabilize or experience modest growth, potentially reaching around $90,000 to $95,000 by 2029. Average rent prices, which have shown less volatility, may continue to hover around $1,000 to $1,200, with potential for slight increases in line with inflation and local economic factors.
In summary, zip code 35061 has demonstrated a robust housing market characterized by high homeownership rates and significant appreciation in average home values over the past decade. Despite recent challenges such as rising interest rates and a slight cooling in home prices, the area has maintained strong homeownership levels. The rental market has shown more variability, with fluctuations in both renter percentages and average rent prices. As we move forward, the interplay between interest rates, local economic conditions, and broader market trends will continue to shape the real estate landscape in this Birmingham zip code.
