Loading Content...
Average Home Values and Ownership in Zip Code 36436: A Decade of Change in Fulton, Alabama
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 36436, located in Fulton, Alabama, has experienced notable shifts in its housing market dynamics over the past decade. This small community has seen significant changes in homeownership rates and housing prices, reflecting broader economic trends and local market conditions. The homeownership rate in zip code 36436 has shown a generally increasing trend from 2013 to 2022. In 2013, the homeownership rate was 74%, which rose to 82% by 2022. This upward trend was particularly pronounced between 2015 and 2020, with the rate climbing from 68% to 88%. Interestingly, this increase in homeownership coincided with a period of relatively stable average home prices. The average home price in 2021 was $120,672, which increased to $127,514 in 2022, representing a 5.7% increase.
The relationship between federal interest rates and homeownership rates in zip code 36436 appears to follow the general economic principle that lower interest rates tend to encourage homeownership. From 2013 to 2020, when interest rates were historically low, ranging from 0.09% to 0.38%, the homeownership rate in the area increased significantly from 74% to 88%. This trend suggests that the low-interest-rate environment may have made homeownership more accessible for residents in this zip code.
Conversely, the renter percentage in zip code 36436 has generally decreased over the same period. In 2013, 25% of residents were renters, which decreased to 18% by 2022. This decline in renters corresponds with an overall increase in average rent prices. The average rent price rose from $714 in 2013 to $779 in 2022, an increase of about 9.1% over nine years. It's worth noting that despite the population growth from 490 in 2013 to 618 in 2022, the renter population decreased, indicating a strong preference for homeownership in this community.
Looking at the most recent data for 2023 and 2024, we see some interesting developments. The average home price in zip code 36436 decreased slightly to $125,167 in 2023 and further to $114,856 in 2024. This represents a decline of about 10% from the 2022 peak. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. This increase in interest rates may be contributing to the cooling of home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 36436 may continue to experience some downward pressure in the short term due to the current high-interest-rate environment. However, as the market adjusts, we expect prices to stabilize and potentially begin a modest upward trend in the latter part of the 5-year period. For rent prices, we predict a continued gradual increase, albeit at a slower rate than seen in previous years, as the market balances between homeownership demands and rental needs.
In summary, zip code 36436 has demonstrated a strong trend towards homeownership over the past decade, with increasing ownership rates and generally rising home prices. The recent cooling of home prices, coupled with rising interest rates, suggests a potential shift in the market dynamics. The community's preference for homeownership, even in the face of population growth, indicates a stable and desirable residential area. As we look to the future, the interplay between interest rates, housing affordability, and local economic factors will continue to shape the housing market in this Alabama town.
