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Average Home Values and Ownership Trends in Zip Code 36619: A Decade of Change in Tillmans Corner, 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 36619, located in Tillmans Corner, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen fluctuations in its population and housing market, reflecting broader economic trends and local dynamics. The homeownership rate in zip code 36619 has shown a gradual decline from 2013 to 2022. In 2013, 73% of residents were homeowners, which increased to a peak of 76% in 2016 and 2017. However, by 2022, the homeownership rate had decreased to 69%. This trend coincides with changes in average home prices, which have seen significant growth. In 2013, the average home price was $115,724, and it steadily increased to $192,060 by 2022, representing a 66% increase over this period.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates in the area increased from 73% to 76%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline, dropping to 69% by 2022. This inverse relationship between interest rates and homeownership rates aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in zip code 36619 has shown interesting trends as well. The percentage of renters increased from 23% in 2017 to 31% in 2022. During this period, average rent prices fluctuated. In 2013, the average rent was $973, which decreased to $840 in 2016 before rising again to $900 in 2017. By 2022, the average rent had slightly decreased to $843. These fluctuations in rent prices, coupled with the increasing percentage of renters, suggest a complex interplay of factors affecting the rental market, possibly including changes in local economic conditions and housing supply.
Looking at the most recent data, the average home price in zip code 36619 continued to rise, reaching $200,772 in 2023 and $206,748 in 2024. This represents a 7.7% increase from 2022 to 2024. Concurrently, federal interest rates have increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing market dynamics in the area.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $230,000 to $240,000 by 2029. Rent prices may also see moderate increases, potentially reaching around $900 to $950 per month on average. However, these predictions are subject to various economic factors and local market conditions.
In summary, zip code 36619 has experienced a gradual shift from homeownership to renting over the past decade, with significant increases in average home prices. The interplay between federal interest rates, homeownership rates, and housing prices has been evident. Moving forward, the area is likely to see continued growth in housing values, but the pace may be moderated by higher interest rates. The rental market is expected to remain strong, with potential for modest increases in average rent prices.
