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Average Home Values and Ownership in Zip Code 36617: A Decade of Change in Mobile, 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 36617, located in Mobile, Alabama, has experienced significant shifts in its housing landscape over the past decade. This area has seen notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 36617 has shown a clear downward trend from 2013 to 2022. In 2013, 59% of housing units were owner-occupied, but by 2022, this figure had dropped to 46%. This decline in homeownership coincided with fluctuations in average home prices. In 2013, the average home price was $36,746, and it increased to $54,210 by 2022, representing a 47.5% increase over this period. Despite this overall increase, there were some fluctuations, with the average home price dipping to $36,215 in 2014 before beginning a steady climb.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally inverse pattern. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable around 58-59%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates started to decline, dropping to 55% by 2019. This trend continued into 2022, with homeownership falling to 46% as interest rates climbed to 1.68%.
Renter occupancy in zip code 36617 has shown an opposite trend to homeownership, increasing from 41% in 2013 to 54% in 2022. This rise in renter-occupied units has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $933, which decreased to $829 by 2022, a 11.1% reduction. However, this period saw various ups and downs, with the average rent reaching a low of $831 in 2020 before slightly increasing again. It's worth noting that the population in this zip code has decreased from 13,509 in 2013 to 12,721 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, the housing market in zip code 36617 continued to evolve. The average home price in 2023 was $52,728, showing a slight decrease from 2022. However, in 2024, the average home price increased to $55,995, indicating a recovery and continued growth. This occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on historical trends and current market conditions, we can expect the average home prices in zip code 36617 to continue their overall upward trajectory over the next five years, albeit with potential short-term fluctuations. The average home price could potentially reach around $65,000 by 2029. Average rent prices, which have been more volatile, may stabilize and potentially increase slightly, possibly reaching around $900 by 2029, assuming economic conditions remain favorable and population trends stabilize.
In summary, zip code 36617 has experienced a significant shift from homeownership to renter occupancy over the past decade, with average home prices generally increasing despite this trend. The area has shown resilience in its housing market, with recent data indicating continued growth in home values even in the face of rising interest rates. These trends suggest a changing demographic and economic landscape in this Mobile, Alabama neighborhood, with potential opportunities and challenges for both residents and investors in the coming years.
