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Average Home Values and Ownership in Zip Code 35801: Aerospace Hub Huntsville's Housing Trends
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 35801, located in Huntsville, Alabama, showcases an intriguing evolution in its housing market over the past decade. This area has experienced notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 35801 has shown a gradual decline from 2013 to 2022. In 2013, 66% of housing units were owner-occupied, but by 2022, this figure had decreased to 64%. This slight downward trend in homeownership coincides with a significant increase in average home prices. In 2013, the average home price in the area was $206,139. By 2022, it had risen dramatically to $379,021, representing an impressive 83.9% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, the period from 2013 to 2016 saw relatively stable interest rates (ranging from 0.11% to 0.40%) and homeownership rates (remaining at 65-66%). However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), we observed a slight decrease in homeownership rates from 64% to 63%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Examining the rental market, we see an inverse relationship to homeownership trends. The percentage of renter-occupied units increased from 34% in 2013 to 36% in 2022. This rise in renters corresponds with an increase in average rent prices. In 2013, the average rent was $872, which climbed to $1,035 by 2022, marking an 18.7% increase. The population in the zip code also grew during this period, from 24,248 in 2013 to 26,262 in 2022, potentially contributing to the increased demand for rental properties.
Looking at the most recent data, the average home price in zip code 35801 reached $384,410 in 2023 and further increased to $385,734 in 2024. This represents a continued upward trend in home values, albeit at a slower pace compared to previous years. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 35801 will continue to rise, albeit at a more moderate pace. Based on historical data and current market conditions, we project average home prices could reach approximately $425,000 to $450,000 by 2029. For average rent prices, the upward trend is likely to persist, potentially reaching $1,200 to $1,300 per month by 2029, considering the area's growing population and the increasing preference for renting.
In summary, zip code 35801 in Huntsville, Alabama, has experienced a gradual shift towards renting, with a slight decrease in homeownership rates over the past decade. This trend has occurred alongside substantial increases in both average home prices and average rent prices. The area's growing population and the interplay between federal interest rates and housing affordability have played significant roles in shaping these trends. As we look to the future, the housing market in this zip code is poised for continued growth, with both home values and rent prices expected to rise, albeit at a more moderate pace than in recent years.
