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Average Home Values and Ownership in Zip Code 36276: Resilient Homeownership Amid Market Fluctuations
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 36276, located in Abanda, Alabama, presents an interesting case study in homeownership and housing market trends. This rural area has experienced fluctuations in its population and housing market over the past decade, with a general trend towards increased homeownership and rising average home prices. The homeownership rate in zip code 36276 has remained relatively stable, hovering around 80% from 2013 to 2022. This high rate of homeownership is significantly above the national average, indicating a strong preference for ownership in this community. Concurrently, average home prices have shown a steady upward trajectory, rising from $78,003 in 2010 to $152,580 in 2022, representing a substantial increase of 95.6% over this period.
Examining the relationship between federal interest rates and homeownership rates reveals an interesting pattern. Despite fluctuations in interest rates, the homeownership rate in this zip code has remained consistently high. For instance, when interest rates were at historic lows of 0.08% in 2021, the homeownership rate stood at 80%. This rate remained unchanged in 2022, even as interest rates rose to 1.68%, suggesting that other factors beyond interest rates play a significant role in maintaining high homeownership levels in this area.
Renter percentages in zip code 36276 have shown slight variations, ranging from 19% to 26% between 2013 and 2022. Interestingly, average rent prices have displayed a downward trend during this period. The average rent decreased from $716 in 2013 to $603 in 2022, a decline of about 15.8%. This decrease in rent prices, coupled with the area's population growth from 2,396 in 2013 to 2,570 in 2022, suggests a complex rental market dynamic that may be influenced by factors such as local economic conditions or housing supply.
In 2023 and 2024, the housing market in zip code 36276 experienced a slight correction. Average home prices decreased from the 2022 peak of $152,580 to $145,751 in 2023 and further to $140,786 in 2024. This decline 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 likely contributed to the cooling of home prices by making mortgages more expensive for potential buyers.
Looking ahead, based on historical trends and current market conditions, we can project potential 5-year trends for average home and rent prices in zip code 36276. Average home prices may continue to experience moderate growth, potentially reaching around $165,000 to $175,000 by 2029, assuming a stabilization of interest rates and continued demand in the area. Average rent prices, which have been on a downward trend, might stabilize or see a slight increase, potentially reaching $625 to $650 by 2029, influenced by factors such as local economic growth and housing supply.
In summary, zip code 36276 demonstrates a strong preference for homeownership, with consistently high rates despite fluctuations in the housing market and interest rates. The area has seen significant appreciation in average home values over the past decade, followed by a recent cooling period. The rental market, characterized by decreasing average rents, presents an intriguing contrast to the homeownership trends. These patterns suggest a resilient local housing market that may continue to evolve in response to economic conditions and demographic changes in the coming years.
