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Average Home Values and Ownership: Zip Code 35756's Remarkable Growth in Huntsville, 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 35756, located in Huntsville, Alabama, has experienced significant growth and changes in its housing market over the past decade. This area has seen a remarkable increase in population and housing prices, with interesting shifts in homeownership and rental patterns. The homeownership rate in zip code 35756 has remained relatively high but fluctuated over the years. In 2013, the homeownership rate was 87%, and it peaked at 89% in both 2014 and 2017. However, by 2022, it had decreased to 83%. During this same period, average home prices showed a consistent upward trend. In 2013, the average home price was $227,093, and it rose steadily to reach $389,383 in 2022, representing a substantial increase of 71.5% over nine years.
Federal interest rates have played a role in homeownership trends in this zip code. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with generally high homeownership rates in the area, often above 85%. However, as interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), we observed a slight decline in homeownership rates, dropping to 83% in 2022.
Rental trends in zip code 35756 have shown some volatility. The percentage of renters fluctuated between 10% and 17% from 2013 to 2022. Interestingly, average rent prices did not always correlate directly with the proportion of renters. For instance, in 2015, when the renter percentage was 12%, the average rent was $1,504, the highest in the recorded period. Conversely, in 2022, with a higher renter percentage of 17%, the average rent was lower at $1,271. This suggests that other factors, such as housing supply and overall market conditions, may have influenced rent prices more than the proportion of renters alone.
Looking at the most recent data, the average home price in zip code 35756 slightly decreased from $389,383 in 2022 to $387,645 in 2023, showing a minor correction in the market. However, in 2024, the average home price has increased again to $389,569, surpassing the 2022 level. This occurs despite the federal interest rate rising to 5.33% in 2024, which might typically discourage home purchases.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 35756 will continue to rise, albeit at a more moderate pace compared to the rapid growth seen between 2020 and 2022. The area's consistent population growth and its location within the expanding Huntsville suggest sustained demand for housing. Average rent prices are expected to stabilize and potentially increase slightly, reflecting the area's economic growth and housing demand.
In summary, zip code 35756 has demonstrated strong growth in both population and housing values over the past decade. While homeownership rates have remained high, there's been a recent slight shift towards renting. The area has shown resilience in its housing market, with average home prices continuing to rise even in the face of increasing interest rates. These trends, coupled with the area's ongoing development, suggest a dynamic and potentially lucrative real estate market in the coming years.
