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Average Home Values and Ownership Trends in Zip Code 35806: A Decade of Change Near Redstone Arsenal
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 35806, located in Huntsville, Alabama, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates and substantial increases in both average home prices and average rent prices.
The homeownership rate in zip code 35806 has shown a slight decline over the years. In 2013, the area had a 57% homeownership rate, which gradually decreased to 49% by 2022. This trend coincides with a remarkable increase in average home prices. In 2013, the average home price was $210,040, and by 2022, it had risen to $355,575, representing a 69% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable, only declining from 57% to 50%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), the homeownership rate stabilized at around 49-50%, possibly due to the offsetting effects of higher interest rates and rising home values.
The renter population in zip code 35806 has grown correspondingly with the decline in homeownership. The percentage of renters increased from 40% in 2013 to 51% in 2022. This shift coincided with a substantial rise in average rent prices. In 2013, the average rent was $952, which increased to $1,140 by 2022, representing a 19.7% increase. The growing renter population and rising rent prices may be attributed to the area's overall population growth, which increased from 19,008 in 2013 to 24,574 in 2022, a 29.3% increase.
Looking at more recent data, the average home price in zip code 35806 continued to rise, reaching $359,284 in 2023 and $361,938 in 2024. This represents a modest increase of 1.8% from 2022 to 2024. Notably, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Based on the observed trends, we can make predictions for the next five years. Average home prices are likely to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $400,000 by 2029. Average rent prices are also likely to continue increasing, potentially reaching $1,300-$1,400 per month by 2029, driven by population growth and demand for rental properties.
In summary, zip code 35806 has experienced a shift towards a higher percentage of renters, accompanied by substantial increases in both average home prices and average rent prices. The area's population growth, rising property values, and fluctuating interest rates have all contributed to these trends. As the housing market continues to evolve, it will be crucial to monitor how these factors impact affordability and housing choices for residents in this Huntsville neighborhood.
