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Berkleigh's Housing Market: Rising Home Values and Stable Ownership in Mobile, Alabama
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Berkleigh, a neighborhood in Mobile, Alabama, has demonstrated a resilient housing market over the past decade. The area has maintained a consistent homeownership rate while experiencing significant increases in both average home prices and rent prices. This analysis examines the key trends and dynamics shaping Berkleigh's housing landscape.
From 2013 to 2022, Berkleigh's homeownership rate remained relatively stable, fluctuating between 67% and 70%. The rate stood at 67% in 2013, reached its peak at 70% in 2014 and 2015, and returned to 67% by 2022. Despite this stability in homeownership, average home prices in the neighborhood have shown a marked upward trend. In 2010, the average home price was $159,876, which briefly declined to $143,921 in 2012 before embarking on a steady increase. By 2022, the average home price had risen to $228,934, representing a substantial 43% increase from 2010 levels.
The interplay between federal interest rates and homeownership rates in Berkleigh presents an intriguing pattern. While interest rates remained low from 2010 to 2015, ranging from 0.1% to 0.18%, homeownership rates in Berkleigh showed little variation. As interest rates began to climb from 2016 onwards, eventually reaching 1.68% in 2022, homeownership rates in the neighborhood exhibited only minor fluctuations. This suggests that local factors may have played a more significant role in homeownership decisions than national interest rate trends.
Renter percentages in Berkleigh have closely mirrored homeownership trends, remaining relatively stable between 30% and 34% from 2013 to 2022. However, average rent prices have demonstrated a consistent upward trajectory. In 2013, the average rent was $942, which increased to $1,047 by 2022, representing an 11% rise. This increase in rent prices occurred alongside population growth, with the number of residents rising from 4,329 in 2013 to 4,746 in 2022. The concurrent increase in population and rent prices suggests that heightened demand may have contributed to the rising cost of rentals.
The years 2023 and 2024 saw Berkleigh's housing market continue its upward trajectory. The average home price reached $238,097 in 2023 and further increased to $244,125 in 2024. This growth persisted despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that both average home prices and rent prices in Berkleigh are likely to continue their upward trend over the next five years. Home prices could potentially reach around $280,000 by 2029, while average rent prices might approach $1,200 per month. However, these projections may be influenced by various factors including economic conditions, local development, and population changes.
In conclusion, Berkleigh has maintained a stable homeownership rate while experiencing significant growth in both average home prices and rent prices. The neighborhood has demonstrated resilience in its housing market, with prices rising despite fluctuations in interest rates and a growing population. These trends indicate a robust and potentially competitive housing market in Berkleigh for the foreseeable future.
