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Average Home Values and Ownership in Zip Code 36049: A Decade of Growth in Luverne, 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 36049, located in Luverne, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, covering 159.6 square miles, has seen a general trend towards increased homeownership and fluctuating property values.
The ownership percentage in zip code 36049 has shown a significant upward trend, rising from 66% in 2013 to 76% in 2022. This increase in homeownership coincided with a substantial rise in average home prices. In 2012, the average home price was $82,124, which steadily increased to $125,459 by 2022, representing a 52.8% increase over this period. The most dramatic jump occurred between 2018 and 2022, with average home prices rising from $88,916 to $125,459, a 41.1% increase in just four years.
Federal interest rates appear to have influenced homeownership rates in this zip code. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership remained relatively stable around 66%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership also increased, reaching 75% by 2019. This trend suggests that local factors may have had a stronger influence on homeownership than national interest rates during this period.
Renter percentages in zip code 36049 have correspondingly decreased from 34% in 2013 to 24% in 2022. Despite this decrease in the renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $623, which increased to $651 by 2022, with some fluctuations in between. Notably, there was a significant spike in average rent to $749 in 2021, before dropping back down in 2022. This trend occurred despite a decreasing population, which fell from 4,593 in 2013 to 4,054 in 2022, suggesting that other factors such as housing supply and local economic conditions may have influenced rent prices.
In 2023, the average home price in zip code 36049 reached $128,051, marking a slight increase from 2022. However, in 2024, there has been a minor decline to $125,762. This recent dip coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the slight cooling in the local housing market.
Looking ahead, predictive models suggest that average home prices in zip code 36049 may continue to experience moderate growth over the next five years, potentially reaching around $140,000 by 2029. Average rent prices are also expected to show a gradual upward trend, possibly approaching $700 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 36049 has seen a significant increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the renter population. Despite recent interest rate hikes and a slight dip in home prices, the overall trend suggests a stable and growing housing market in this area. The interplay between homeownership rates, housing prices, and rent costs reflects the dynamic nature of this local real estate market.
