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Average Home Values and Ownership in Zip Code 35586: A Decade of Resilience in Sulligent, 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 35586, located in Sulligent, Alabama, has shown interesting dynamics in homeownership and housing market trends over the past decade. This area has experienced fluctuations in both ownership rates and housing prices, reflecting the complex interplay of economic factors and local conditions.
The homeownership rate in zip code 35586 has remained relatively stable, with a slight upward trend from 2013 to 2022. In 2013, the homeownership rate was 70%, which increased to 75% by 2022. This trend coincides with significant changes in average home prices. From 2017 to 2022, average home prices in the area rose substantially, from $77,261 to $124,738, representing a 61.4% increase over five years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates held steady around 71-73%. When interest rates began to rise in 2017 (1%), homeownership rates also increased, reaching 75% by 2019. This suggests that despite rising interest rates, other factors may have influenced the local housing market, potentially including improved economic conditions or increased housing affordability relative to renting.
Renter percentages in zip code 35586 have shown a slight downward trend, from 30% in 2013 to 25% in 2022. Interestingly, average rent prices have fluctuated during this period. In 2013, the average rent was $422, which increased to $463 by 2021, representing a 9.7% rise. However, there was a slight decrease to $453 in 2022. The population of the zip code has also declined from 4,871 in 2013 to 4,199 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, average home prices in zip code 35586 reached $120,748 in 2023 and $114,779 in 2024, showing a slight decrease from the peak in 2022. This trend coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 35586 may continue to experience modest fluctuations. The recent cooling trend suggests that prices could stabilize or potentially decrease slightly in the short term, especially if interest rates remain high. However, long-term appreciation is still possible given the overall upward trend observed since 2017. For rent prices, the forecast suggests a potential for gradual increases, considering the historical trend and the area's evolving demographics.
In summary, zip code 35586 has demonstrated resilience in homeownership rates despite fluctuations in the housing market. The area has seen significant appreciation in home values since 2017, although recent data indicates a cooling trend. Rent prices have shown moderate increases over time, but with some volatility. The interplay between interest rates, population changes, and local economic factors will likely continue to shape the housing market in this Alabama community in the coming years.
