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Boaz, Alabama: Rising Home Values and Steady Ownership in a Growing Community
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
Boaz, Alabama, is a charming city located in Marshall and Etowah counties. Known for its rich agricultural heritage and friendly community, Boaz has experienced notable fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. The city has maintained a relatively stable homeownership rate, while average home prices have shown a consistent upward trend, and average rent prices have fluctuated.
The homeownership rate in Boaz has remained relatively stable, with slight variations over the years. In 2013, the homeownership rate was 66%, and it reached its peak of 69% in 2022. This trend coincides with the steady increase in average home prices, which rose from $99,892 in 2013 to $183,053 in 2022, representing an impressive 83% increase over this period. The relationship between homeownership rates and average home prices suggests that despite rising property values, Boaz residents have maintained their ability to purchase homes.
Federal interest rates have played a significant role in homeownership trends in Boaz. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponds with the city's stable homeownership rates, as affordable financing options likely encouraged home purchases. The slight increase in homeownership from 66% in 2013 to 69% in 2022 may be attributed to these favorable borrowing conditions.
Renter percentages in Boaz have shown minor fluctuations, ranging from 31% to 37% between 2013 and 2022. Interestingly, average rent prices have not followed a consistent pattern during this period. In 2013, the average rent was $634, peaking at $775 in 2016 before declining to $628 in 2022. This fluctuation in rent prices, coupled with the city's population growth from 11,739 in 2013 to 11,521 in 2022, suggests a complex rental market influenced by various factors such as housing supply, local economic conditions, and demographic shifts.
In 2023 and 2024, Boaz continued to experience growth in average home prices. The average home price reached $185,235 in 2023 and further increased to $189,241 in 2024, representing a 2.2% and 3.4% year-over-year growth, respectively. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the city.
Looking ahead, based on historical trends and current market conditions, we can forecast the following 5-year trends for Boaz: Average home prices are projected to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. We estimate average home prices could reach approximately $215,000 to $225,000 by 2029. Average rent prices may stabilize or show modest increases, potentially reaching $650 to $700 per month by 2029, as the rental market adjusts to changes in homeownership rates and overall housing demand.
In summary, Boaz has demonstrated resilience in its housing market, maintaining stable homeownership rates despite rising home prices. The city's ability to sustain this balance while experiencing population growth highlights its appeal as a residential community. The interplay between federal interest rates, home prices, and rent costs will continue to shape Boaz's housing landscape in the coming years, with a trend towards gradual appreciation in both the ownership and rental markets.
