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Average Home Values and Ownership in Zip Code 35213: Mountain Brook'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 35213, located in Mountain Brook, Alabama, is a residential area known for its affluent neighborhoods and high-quality living standards. Over the past decade, this area has experienced notable shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics.
The ownership percentage in zip code 35213 has shown a general upward trend, increasing from 72% in 2014 to 77% in 2022. This rise in homeownership coincides with a significant increase in average home prices, which grew from $437,729 in 2014 to $722,909 in 2022, representing a 65% increase over eight years. The relationship between ownership rates and home prices suggests that despite rising costs, the area has remained attractive to potential homeowners, possibly due to its desirable location and amenities.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2010 to 2021 saw historically low interest rates, ranging from 0.08% to 0.40%, which likely contributed to the increasing homeownership rates. For instance, the ownership percentage rose from 72% in 2015 to 75% in 2016 when interest rates were at 0.40%. The low-interest environment made mortgages more affordable, encouraging home purchases.
Renter percentages in zip code 35213 have fluctuated inversely to ownership rates, declining from 28% in 2015 to 23% in 2022. Interestingly, average rent prices have shown an overall upward trend despite the decreasing renter population. The average rent increased from $1,238 in 2015 to $1,414 in 2022, a 14% rise. This trend suggests that even with fewer renters, the demand for rental properties in this desirable area remains strong, possibly due to its proximity to urban amenities or job centers.
In 2023 and 2024, the housing market in zip code 35213 continued its upward trajectory. The average home price reached $754,794 in 2023 and further increased to $771,160 in 2024, representing a 6.7% growth over two years. This growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. The continued price appreciation in the face of higher borrowing costs underscores the strong demand for housing in this area.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue over the next five years, albeit at a potentially slower pace due to higher interest rates. Average home prices could potentially reach the $850,000 to $900,000 range by 2029, while average rent prices might increase to around $1,600 to $1,700 per month.
In summary, zip code 35213 has demonstrated a robust housing market characterized by increasing homeownership rates and rising property values. The area has shown resilience to economic fluctuations, maintaining its attractiveness to both homeowners and renters. The continued appreciation of home values, even in the face of rising interest rates, suggests a strong underlying demand for housing in this desirable location. As the market evolves, it will be interesting to observe how these trends develop and impact the local community.
