Loading Content...
Average Home Values and Ownership Trends in Zip Code 35035: Pea Ridge's Shifting Housing Landscape
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Pea Ridge, located in zip code 35035 in Alabama, presents an interesting case study of homeownership and rental trends over the past decade. This small community has experienced fluctuations in its ownership rates and housing market dynamics, reflecting broader economic shifts and local factors.
The homeownership rate in Pea Ridge has shown notable variations from 2013 to 2022. In 2013, the area boasted a high 92% homeownership rate, which gradually decreased to 82% by 2016. However, the trend reversed, and by 2021, homeownership rebounded to 87%. The most recent data from 2022 shows a significant drop to 77%, the lowest in the observed period. These changes in homeownership rates appear to have an inverse relationship with average home prices, although specific price data for earlier years is not available.
Federal interest rates have played a crucial role in shaping homeownership trends in Pea Ridge. The period from 2013 to 2016, when homeownership declined, coincided with historically low interest rates ranging from 0.09% to 0.4%. Counter-intuitively, this period saw a decrease in homeownership, possibly due to other local economic factors. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates initially increased before dropping sharply in 2022. This suggests that while low interest rates generally encourage homeownership, other factors such as local economic conditions and housing availability also significantly influence ownership rates.
The rental market in Pea Ridge has shown interesting trends as well. The percentage of renters increased from 8% in 2013 to 18% in 2016, coinciding with a decrease in average rent from $899 in 2013 to $696 in 2016. This suggests that lower rents may have attracted more renters during this period. However, as the rental percentage decreased to 13% by 2021, average rent increased to $834, indicating a possible tightening of the rental market. The most recent data from 2022 shows a sharp increase in renters to 23%, with average rent remaining stable at $832.
Looking at the current housing market, the average home price in Pea Ridge for 2023 was $268,761, with a slight decrease to $265,407 in 2024. This minor decline occurs against the backdrop of significantly higher interest rates, which stood at 5.02% in 2023 and increased to 5.33% in 2024. These higher interest rates may be contributing to the slight cooling in home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Pea Ridge may experience moderate growth, potentially reaching around $280,000 by 2029. This projection assumes a gradual stabilization of interest rates and continued demand in the area. For average rent prices, we predict a steady increase, potentially reaching $900 per month by 2029, driven by population growth and housing demand.
In summary, Pea Ridge has experienced significant fluctuations in homeownership rates, with recent trends showing a decrease in ownership and an increase in renters. The interplay between federal interest rates, local economic conditions, and housing prices has created a dynamic real estate market in this Alabama community. As we move forward, the balance between homeownership and renting is likely to continue evolving, influenced by economic factors and housing market dynamics.
