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Average Home Values and Ownership in Zip Code 36460: A Decade of Change in Monroeville, 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 36460, located in Monroeville, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, known for its rich literary history as the hometown of Harper Lee, author of "To Kill a Mockingbird," has seen fluctuations in its real estate market that reflect broader economic trends. The homeownership rate in zip code 36460 has shown a general declining trend from 2013 to 2022. In 2013, the homeownership rate stood at 69%, but by 2022, it had decreased to 61%. This decline coincided with a significant increase in average home prices. From 2016 to 2022, average home prices rose from $92,183 to $146,921, representing a substantial 59.4% increase over six years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, as interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates were relatively stable, hovering around 65-69%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a general decline, dropping to 61% by 2022.
Renter percentages in zip code 36460 have shown an overall increasing trend, moving from 31% in 2013 to 39% in 2022. This increase in renters coincided with fluctuations in average rent prices. Average rent prices rose from $616 in 2013 to $649 in 2021, before decreasing slightly to $597 in 2022. The population of the zip code has decreased from 10,216 in 2013 to 9,211 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, average home prices in zip code 36460 peaked at $146,921 in 2022 before experiencing a slight decline to $142,524 in 2023 and further to $141,386 in 2024. This recent trend 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 in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 36460 may experience moderate growth, potentially reaching around $155,000 to $160,000 by 2029. This projection assumes a gradual economic recovery and stabilization of interest rates. For average rent prices, we expect a modest increase, potentially reaching $650 to $675 per month by 2029, considering historical trends and projected population changes.
In summary, zip code 36460 has experienced a decline in homeownership rates coupled with a significant increase in average home prices from 2013 to 2022. The rental market has seen an increase in the percentage of renters, with fluctuating but generally increasing average rent prices. Recent data shows a slight cooling in the housing market, likely influenced by rising interest rates. Looking forward, moderate growth in both home prices and rent is anticipated, but this growth may be tempered by broader economic factors and local population trends.
