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Boligee, Alabama: A Decade of Housing Trends in a Small Town
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Boligee, a small town in Alabama, has experienced significant fluctuations in its demographic and housing landscape over the past decade. The town's ownership percentages, average home prices, and average rent prices have shown interesting trends that reflect broader economic and social changes.
From 2013 to 2022, Boligee's homeownership rates fluctuated considerably. In 2013, the town had an even split between owners and renters at 50% each. By 2022, the ownership percentage had increased significantly to 64%. This upward trend in homeownership coincided with changes in average home prices, though specific price data for earlier years is not available. The most recent data shows average home prices in Boligee at $94,986 in 2023, indicating a relatively affordable housing market compared to many other areas in the United States.
The relationship between federal interest rates and homeownership rates in Boligee follows a generally expected pattern. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates in Boligee increased from 50% to 55%. This aligns with the principle that lower interest rates tend to encourage homeownership due to more affordable financing options. However, despite rising interest rates from 2017 to 2019 (1.00% to 2.16%), Boligee's homeownership rate remained relatively stable, suggesting other local factors may have influenced housing decisions.
Renter percentages and average rent prices in Boligee show an interesting inverse relationship. In 2013, when 50% of residents were renters, the average rent was $325. As the renter percentage decreased to 36% in 2022, the average rent increased to $427. This could indicate that as more residents became homeowners, the rental market became more competitive, driving up prices. However, it's important to note that the highest average rent was recorded in 2017 at $588, when the renter percentage was 48%.
Looking at the most recent data, the average home price in Boligee for 2023 is $94,986, with a projected increase to $96,183 in 2024. This represents a modest growth of about 1.26% year-over-year. Concurrently, the federal interest rate stands at 5.02% in 2023 and is expected to rise slightly to 5.33% in 2024. These higher interest rates compared to previous years may impact future homeownership trends in the town.
Applying predictive models to forecast 5-year trends, we can anticipate a continued modest increase in average home prices in Boligee, potentially reaching around $101,000 by 2029 if the current growth rate persists. Average rent prices may stabilize or show slight increases, potentially reaching around $450-$475 by 2029, assuming the town's population and economic conditions remain relatively stable.
In summary, Boligee has seen a notable increase in homeownership rates over the past decade, with current rates favoring ownership. The town's housing market appears relatively affordable, with recent data showing modest growth in home prices. The rental market has experienced fluctuations in both occupancy rates and prices, likely influenced by shifts in homeownership and local economic factors. As Boligee moves forward, these housing trends will continue to shape the town's demographic and economic landscape.
