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Average Home Values and Ownership in Zip Code 36117: A Decade of Resilience in Montgomery, 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 36117, located in Montgomery, Alabama, has experienced notable changes in its housing market over the past decade. This 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 36117 has shown a slight decline from 2013 to 2020, followed by a modest rebound. In 2013, 63% of housing units were owner-occupied. This percentage decreased gradually to 59% by 2020, before increasing slightly to 61% in 2022. Conversely, the average home prices in the area have demonstrated a more volatile pattern. From 2013 to 2015, average home prices declined from $170,890 to $169,287. However, since 2015, there has been a consistent upward trend, with average home prices reaching $229,485 in 2022, representing a significant 35.6% increase over seven years.
The relationship between federal interest rates and homeownership rates in zip code 36117 aligns with well-established economic principles. During periods of lower interest rates, such as from 2013 to 2016 when rates remained below 0.5%, homeownership rates remained relatively stable around 61-63%. As interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, homeownership rates showed a slight decline, dropping to 59% by 2020. This trend suggests that higher interest rates may have made home financing less affordable for some potential buyers in the area.
Renter percentages in zip code 36117 have generally mirrored the inverse of homeownership trends, increasing from 37% in 2013 to 41% in 2020, before slightly decreasing to 39% in 2022. Average rent prices have shown overall growth, albeit with some fluctuations. In 2013, the average rent was $1,157, which increased to $1,187 by 2014. After some variations, average rent reached $1,182 in 2022, representing a modest 2.2% increase over the nine-year period. The population growth in the zip code, from 50,456 in 2013 to 52,824 in 2022, may have contributed to the sustained demand for rental properties and the overall increase in average rent prices.
In 2023 and 2024, the housing market in zip code 36117 continued its upward trajectory. Average home prices rose to $240,996 in 2023 and further increased to $246,133 in 2024, marking a 7.3% growth over two years. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for some buyers.
Looking ahead, predictive models suggest that average home prices in zip code 36117 may continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase moderately, driven by population growth and potential shifts towards renting if homeownership becomes less affordable. However, these trends may be influenced by broader economic factors and local market conditions.
In summary, zip code 36117 has experienced a slight decline in homeownership rates from 2013 to 2020, followed by a modest rebound. Average home prices have shown significant growth, particularly since 2015, while average rent prices have increased more modestly. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of the local real estate market. As the area continues to grow, these trends will likely shape the housing landscape in the coming years.
