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Average Home Values and Ownership in Zip Code 36029: A Rural Alabama Housing Market Analysis
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
Fitzpatrick, located in zip code 36029 in Alabama, is a small rural community that has experienced fluctuating demographics over the past decade. The area has seen notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Fitzpatrick has shown significant variation between 2013 and 2022. In 2013, the ownership rate stood at 88%, which remained stable through 2014. However, there was a notable decline to 79% in 2016, followed by a sharp increase to 96% in 2019 and 2020. By 2022, the ownership rate slightly decreased to 86%. These fluctuations in homeownership rates coincide with changes in the area's population, which peaked at 1,341 residents in 2017 before declining to 689 in 2022.
The relationship between federal interest rates and homeownership rates in Fitzpatrick appears to follow general economic principles. As interest rates remained low between 2013 and 2016, hovering around 0.1% to 0.4%, homeownership rates were generally high, albeit with some fluctuation. The slight increase in interest rates to 1% in 2017 coincided with a rise in homeownership to 87%. Interestingly, as interest rates continued to rise to 2.16% in 2019, homeownership in the area reached its peak at 96%, suggesting other local factors may have influenced this trend.
Rental trends in Fitzpatrick have shown inverse patterns to homeownership rates. The percentage of renters was relatively stable at 12-13% from 2013 to 2015 but saw a significant increase to 21% in 2016. This spike in renters corresponded with the lowest homeownership rate observed during the period. Average rent prices have shown considerable volatility, starting at $674 in 2013, rising sharply to $1,038 in 2014, then fluctuating between $674 and $1,240 over the following years. By 2022, the average rent had settled at $1,190, with the renter population comprising 14% of the community.
In 2023 and 2024, we observe significant changes in the housing market for Fitzpatrick. The average home price in 2024 is reported at $240,365, indicating a substantial increase from previous years. This rise in home values coincides with higher federal interest rates, which stood at 5.02% in 2023 and increased further to 5.33% in 2024. These higher interest rates may impact affordability and potentially influence future homeownership trends in the area.
Looking ahead, we can project potential trends for the next five years based on historical data and current market conditions. Given the recent increase in average home prices and higher interest rates, we may see a stabilization or slight decrease in homeownership rates as affordability becomes a greater concern. Average home prices could continue to appreciate, albeit at a slower rate, possibly reaching around $260,000 to $280,000 by 2029. Rent prices may also continue to rise, potentially reaching an average of $1,300 to $1,400 per month, driven by increased demand for rental properties if homeownership becomes less accessible due to higher prices and interest rates.
In summary, Fitzpatrick has experienced significant fluctuations in homeownership rates, population, and housing costs over the past decade. The recent sharp increase in average home prices, coupled with rising interest rates, suggests a changing landscape for both homeowners and renters in the area. These trends indicate a potentially challenging market for new homebuyers but may present opportunities for long-term homeowners and investors in the rental market.
