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Average Home Values and Ownership in Zip Code 36527: A Decade of Growth in Spanish Fort, 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 36527, located in Spanish Fort, Alabama, has experienced significant changes in its housing market over the past decade. This area has seen a notable increase in population and average home prices, alongside fluctuations in homeownership rates and average rent prices. The housing market in this zip code has demonstrated resilience and growth, with a steady increase in property values and a consistent preference for homeownership among residents.
The homeownership rate in zip code 36527 has remained relatively stable, with minor fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 72%, and by 2022, it had slightly increased to 73%. During this period, average home prices in the area saw a substantial rise. In 2013, the average home price was $231,248, which steadily increased to $380,968 by 2022, representing a 64.7% increase over nine years. This trend suggests that despite rising home prices, residents in this zip code have maintained a strong preference for homeownership.
Federal interest rates have played a role in homeownership trends in zip code 36527. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), homeownership rates remained stable at around 70-71%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased slightly, reaching 75% in 2018. This could indicate that local factors, such as job growth or community development, may have had a stronger influence on homeownership than national interest rates in this specific area.
Renter percentages in zip code 36527 have shown slight variations, ranging from 24% to 30% between 2013 and 2022. The average rent prices have also fluctuated during this period. In 2013, the average rent was $1,238, which peaked at $1,430 in 2018 before settling at $1,313 in 2022. Interestingly, the highest percentage of renters (30%) was observed in 2020, coinciding with a slight dip in average rent to $1,307. This could be attributed to the economic uncertainties during the COVID-19 pandemic, which may have temporarily shifted some residents from homeownership to renting.
In 2023 and 2024, the housing market in zip code 36527 continued to evolve. The average home price in 2023 reached $391,920, a 2.9% increase from 2022. In 2024, it further increased to $395,307, showing a slower growth rate of 0.9%. This deceleration in price growth coincides with a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the slowing pace of home price appreciation in the area.
Looking ahead, based on historical trends and current market conditions, we can forecast potential 5-year trends for average home and rent prices in zip code 36527. Average home prices are likely to continue their upward trajectory, albeit at a more moderate pace due to higher interest rates. We might expect average home prices to reach around $450,000 to $475,000 by 2029. Average rent prices, which have shown more volatility, may stabilize and gradually increase, potentially reaching $1,500 to $1,600 per month by 2029.
In summary, zip code 36527 has demonstrated a robust housing market with steadily increasing home values and a stable homeownership rate. The area has shown resilience in maintaining high homeownership levels despite rising home prices and fluctuating interest rates. The rental market, while smaller, has remained an important component of the local housing ecosystem, adapting to economic changes and population growth. As the area continues to develop, it will be crucial to monitor how these housing trends evolve in response to broader economic factors and local demographic shifts.
