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Average Home Values and Ownership: Zip Code 36740's Resilient Housing Market in Rural 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 36740, located in Forkland, Alabama, presents an interesting case study of demographic and housing trends in a small rural community. Over the past decade, this area has experienced fluctuations in homeownership rates and rent prices, reflecting broader economic and social dynamics.
The homeownership rate in zip code 36740 has shown notable variations between 2013 and 2022. Starting at 75% in 2013, it reached a peak of 82% in 2018 before declining to 69% in 2020. However, by 2022, it rebounded to 79%. These shifts in homeownership coincided with changes in average rent prices. The median rent increased from $574 in 2013 to $896 in 2018, aligning with the peak in homeownership. Subsequently, rent prices decreased, settling at $603 in 2022.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, the period of low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%) coincided with relatively stable homeownership rates between 75% and 80%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates initially increased to 82% in 2018 but then dropped to 70% by 2019. This suggests that while low interest rates generally support homeownership, other local factors also play a significant role in this small community.
Renter percentages in zip code 36740 have inversely mirrored homeownership trends. The renter population decreased from 25% in 2013 to 18% in 2018, coinciding with the peak in homeownership. However, by 2020, the renter percentage increased to 31%, aligning with a drop in homeownership. Average rent prices have shown volatility, with a significant spike to $896 in 2018 before decreasing to $603 in 2022. These fluctuations in rent prices and renter percentages may be influenced by the area's changing population, which decreased from 1,407 in 2013 to 1,001 in 2022.
As of 2024, the average home price in zip code 36740 stands at $111,094, a slight increase from $108,655 in 2023. This modest growth occurs against the backdrop of relatively high federal interest rates, which are at 5.33% in 2024, up from 5.02% in 2023. These figures suggest a resilient housing market despite challenging financing conditions.
Looking ahead, based on current trends and economic indicators, we can project potential scenarios for the next five years. Average home prices in zip code 36740 may continue to see modest growth, potentially reaching around $120,000 by 2029. Rent prices, which have shown volatility, might stabilize and gradually increase, possibly reaching an average of $650-$700 per month by 2029. However, these projections are subject to various factors including local economic conditions, population changes, and broader market trends.
In summary, zip code 36740 demonstrates a dynamic housing market characterized by fluctuating homeownership rates and rent prices. The area has shown resilience in maintaining relatively stable housing prices despite population changes and varying economic conditions. The interplay between homeownership, rent prices, and federal interest rates reflects the complex nature of housing markets in small rural communities. Moving forward, the area may continue to see moderate growth in both home values and rent prices, barring any significant economic shifts.
