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Brookwood, Mobile: Rising Home Values and Shifting Ownership Trends
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
Brookwood, a neighborhood in Mobile, Alabama, has undergone significant changes in its real estate landscape over the past decade. The area has experienced a notable shift from homeownership to a renter-majority community, accompanied by substantial increases in average home values. This transformation has been influenced by various factors, including federal interest rates and local market dynamics. From 2013 to 2022, Brookwood witnessed a consistent decline in homeownership rates, dropping from 53% to 37%. Concurrently, average home prices rose from $100,819 to $160,039, marking a 58.7% increase over nine years. This inverse relationship suggests that rising home prices may have contributed to the decreasing rate of homeownership in the neighborhood. Federal interest rates have played a crucial role in shaping homeownership trends in Brookwood. Between 2013 and 2016, when interest rates were historically low (0.11% to 0.4%), homeownership rates remained relatively stable at 46-49%. However, as interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, falling to 37% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership declined, the renter percentage in Brookwood increased from 47% in 2013 to 63% in 2022. This shift towards a renter-majority community was accompanied by fluctuations in average rent prices. In 2013, the average rent was $1,002, which decreased slightly to $959 by 2017 before climbing to $1,080 by 2022. This represents a 7.8% increase over the decade, despite some volatility. The growing renter population, which increased from 1,132 in 2013 to 2,143 in 2022, may have contributed to the upward pressure on rent prices. The real estate market in Brookwood continued its upward trajectory in 2023 and 2024. Average home prices reached $168,267 in 2023 and further increased to $176,557 in 2024, representing a 10.3% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These high interest rates would typically be expected to cool the housing market, yet Brookwood's home prices have shown resilience. Looking ahead, predictive models suggest that both average home prices and rent prices in Brookwood are likely to continue their upward trend over the next five years. Home prices are projected to increase by approximately 3-5% annually, potentially reaching around $205,000 by 2029. Rent prices are expected to grow at a slightly slower rate of 2-3% per year, potentially reaching about $1,200 by 2029. However, these projections are subject to various economic factors and local market conditions. In summary, Brookwood has transformed into a renter-majority neighborhood over the past decade, with homeownership rates declining as average home prices have risen. The interplay between federal interest rates, home prices, and rental demand has shaped these trends. Despite recent high interest rates, the neighborhood's real estate market has shown resilience, with both home and rent prices continuing to climb. These trends suggest a dynamic and evolving real estate landscape in Brookwood, with potential implications for future community demographics and housing affordability.
