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Average Home Values and Ownership in Zip Code 35114: Alabaster'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 35114, located in Alabaster, Alabama, has shown remarkable stability in homeownership rates while experiencing significant changes in average home prices and average rent over the past decade. This area has maintained a consistently high rate of owner-occupied housing, with a slight increase in recent years.
The homeownership rate in zip code 35114 has remained notably stable, with a slight upward trend. From 2013 to 2019, the percentage of owner-occupied homes held steady at 86%. In 2020, there was a notable increase to 90%, which has been maintained through 2022. This rise in homeownership coincides with a period of substantial growth in average home prices. In 2013, the average home price was $181,941, and by 2022, it had risen to $325,248, representing a significant 78.8% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. Despite fluctuations in interest rates, the homeownership rate remained stable at 86% from 2013 to 2019, even as interest rates rose from 0.11% in 2013 to 2.16% in 2019. The increase in homeownership to 90% in 2020 coincided with a sharp drop in interest rates to 0.38%, potentially making home purchases more accessible. This high rate of homeownership has persisted through 2022, even as interest rates began to rise again.
Renter percentages in zip code 35114 have shown a slight downward trend, mirroring the increase in homeownership. The percentage of renter-occupied housing decreased from 13% in 2013 to 10% in 2022. Interestingly, average rent prices have fluctuated over this period. In 2013, the average rent was $1,266, which dropped to $982 in 2014 before rising again. By 2022, the average rent had decreased slightly to $1,250, showing overall stability despite yearly fluctuations. These trends occurred against a backdrop of population growth, with the population increasing from 6,826 in 2013 to 7,600 in 2022.
In 2023, the average home price in zip code 35114 continued to rise, reaching $328,154. This upward trend persisted into 2024, with the average home price further increasing to $332,764. Notably, these price increases occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and further to 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 35114 are likely to continue their upward trajectory over the next five years, albeit possibly at a more moderate pace due to the higher interest rate environment. Average rent prices, which have shown more stability, may see modest increases in line with inflation and housing demand. The area's consistent population growth and high homeownership rates suggest a continued strong demand for housing, which could support both home values and rental rates.
In summary, zip code 35114 has demonstrated a remarkably stable and high rate of homeownership, reaching 90% in recent years. This has occurred alongside significant appreciation in average home values, particularly since 2013. The rental market, while smaller, has shown resilience with relatively stable average rents. The area's ability to maintain high home prices and steady rents, even in the face of rising interest rates, indicates a robust local housing market with strong underlying demand.
