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Average Home Values and Ownership in Zip Code 35473: A Decade of Change in Northport, Alabama
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 35473, located in Northport, Alabama, has experienced significant changes in its real estate landscape over the past decade. This suburban area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 35473 has shown a gradual decline from 2013 to 2022. In 2013, 73% of residents were homeowners, but by 2022, this figure had decreased to 67%. Concurrently, average home prices have seen a substantial increase. In 2013, the average home price was $157,992, and by 2022, it had risen to $249,129, representing a 57.7% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained relatively low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained stable at around 71-73%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates started to decline, reaching 70% in 2017 and 72% in 2019. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a further decrease in homeownership to 68% and 67% respectively, possibly due to economic uncertainties during the pandemic.
The renter population in zip code 35473 has shown an overall increase from 27% in 2013 to 33% in 2022. This trend aligns with the rise in average rent prices, which increased from $994 in 2013 to $936 in 2022. However, it's worth noting that rent prices peaked at $1,120 in 2017 before declining. The population growth from 18,300 in 2013 to 21,861 in 2022 may have contributed to the increased demand for rental properties.
In 2023 and 2024, the real estate market in zip code 35473 continued to evolve. The average home price reached $256,885 in 2023 and further increased to $258,313 in 2024, showing a slowing but still upward trend. Notably, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions.
Looking ahead, predictive models suggest that average home prices in zip code 35473 may continue to rise moderately over the next five years, potentially reaching around $275,000 to $285,000 by 2029. Average rent prices are also expected to increase, possibly reaching $1,050 to $1,100 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 35473 has experienced a shift towards renting, with homeownership rates declining as average home prices have increased substantially. The interplay between federal interest rates, population growth, and local economic conditions has shaped these trends. As the area continues to grow, balancing affordability with market demand will be crucial for maintaining a diverse and thriving community.
