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Average Home Values and Ownership in Zip Code 35064: A Decade of Significant Shifts
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 35064, located in Fairfield, Alabama, has experienced significant shifts in homeownership rates and housing prices over the past decade. This area has seen a general decline in homeownership, coupled with fluctuating average home prices and rising average rent costs.
The homeownership rate in zip code 35064 has shown a steady decline from 2013 to 2022. In 2013, 61% of housing units were owner-occupied, but by 2022, this figure had dropped to 55%. During this same period, average home prices exhibited a notable upward trend. In 2013, the average home price was $45,543, which more than doubled to $99,803 by 2022. This inverse relationship suggests that rising home prices may have contributed to the decrease in homeownership rates, as properties became less affordable for potential buyers.
Federal interest rates have played a role in homeownership trends in zip code 35064. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.40%, which coincided with relatively stable homeownership rates between 59% and 62%. However, as interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), homeownership rates declined from 59% to 54%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates declined, the percentage of renters in zip code 35064 increased from 39% in 2013 to 45% in 2022. Concurrently, average rent prices rose from $714 in 2013 to $792 in 2022, representing an 11% increase. The population of the area decreased from 12,148 in 2013 to 10,752 in 2022, which may have influenced the rental market dynamics. Despite the population decrease, the rising rent prices suggest a sustained demand for rental properties in the area.
In 2023 and 2024, the average home prices in zip code 35064 showed a slight decline, dropping from $99,803 in 2022 to $96,004 in 2023, and further to $93,149 in 2024. This decrease coincides with a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of home prices by making mortgages more expensive for potential buyers.
Looking ahead, predictive models suggest that average home prices in zip code 35064 may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid increases seen in the early 2020s. Average rent prices are also projected to rise steadily, driven by the ongoing demand for rental properties and the overall trend of increasing housing costs in the area.
In summary, zip code 35064 has witnessed a shift towards renting, with homeownership rates declining as average home prices have more than doubled since 2013. The interplay between federal interest rates, housing affordability, and demographic changes has shaped these trends. While recent data shows a slight cooling in the housing market, both home prices and rent costs are expected to continue their upward trajectory in the coming years, albeit at a more moderate pace.
