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Brewton, Alabama: A Decade of Rising Home Values and Shifting Ownership Patterns
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
Brewton, Alabama, a small city in Escambia County, is known for its rich history and charming southern atmosphere. Over the past decade, Brewton has experienced notable changes in its housing market, characterized by fluctuating homeownership rates and increasing property values. From 2013 to 2022, the city witnessed a slight decline in homeownership while average home prices and rent costs generally increased.
The homeownership rate in Brewton decreased from 74% in 2013 to 70% in 2022. Concurrently, average home prices rose significantly, from $85,549 in 2012 to $142,740 in 2022, marking a 66.8% increase over a decade. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Brewton. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.4%, coinciding with stable homeownership rates of 74%. As interest rates began to rise in 2017, reaching 1.83% by 2018, homeownership rates started to decline, dropping to 68% in 2018. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Brewton increased from 26% in 2013 to 30% in 2022. Concurrently, average rent prices rose from $555 in 2013 to $636 in 2022, an increase of 14.6%. The rise in both renter percentage and average rent prices could be attributed to various factors, including population growth from 7,971 in 2013 to 8,150 in 2022, which may have increased demand for rental properties.
In 2023, the average home price in Brewton reached $149,724, and in 2024, it further increased to $155,527. These figures represent a continued upward trend in property values. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing market dynamics in Brewton.
Looking ahead, based on the observed trends, average home prices in Brewton are expected to continue rising over the next five years, potentially reaching around $180,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $700 per month within the same timeframe. However, the rate of increase may be moderated by the current higher interest rates, which could slow down housing demand.
In summary, Brewton has experienced a gradual shift towards more renters and higher housing costs over the past decade. The inverse relationship between homeownership rates and average home prices, coupled with the influence of federal interest rates, has shaped the city's housing market. As property values continue to rise, affordability may become an increasingly important factor in Brewton's housing landscape.
