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Bush Hills: Rising Home Values Amid Fluctuating Ownership in a Resilient Birmingham Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Bush Hills, a neighborhood in Birmingham, Alabama, has experienced significant changes in homeownership rates and housing prices over the past decade. In 2022, the neighborhood had a population of 3,743 and an estimated 1,434 housing units. The area has seen a notable increase in homeownership rates, coupled with fluctuations in average home prices and rent costs.
The homeownership rate in Bush Hills has shown a remarkable upward trend, particularly in recent years. In 2013, the homeownership rate was 68%, which decreased to 49% in 2018. However, there has been a significant rebound since then, with the rate reaching 73% in 2022. This increase in homeownership coincides with changes in average home prices. The average home price in Bush Hills was $36,304 in 2013, rising to $96,789 in 2022, representing a substantial increase of 166% over this period.
The relationship between federal interest rates and homeownership rates in Bush Hills presents an interesting dynamic. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.83%), homeownership rates initially declined before rebounding strongly. This suggests that other local factors may have influenced homeownership trends more significantly than national interest rates during this period.
Renter percentages and average rent prices in Bush Hills have also shown notable trends. The percentage of renters increased from 24% in 2013 to a peak of 46% in 2018, before declining to 27% in 2022. Average rent prices have generally increased over this period, rising from $804 in 2013 to $1,018 in 2022, an increase of 26.6%. The peak in renter percentage coincided with the highest average rent of $1,034 in 2018, suggesting a potential correlation between rental demand and prices.
In 2023 and 2024, Bush Hills has experienced some shifts in the housing market. The average home price slightly decreased to $95,654 in 2023 and further to $90,286 in 2024. This represents a 6.7% decrease from the 2022 peak. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may be influencing the housing market dynamics.
Looking ahead, based on recent trends and current market conditions, a 5-year forecast for Bush Hills suggests a potential stabilization or modest growth in average home prices. Average rent prices may continue to increase moderately, driven by the area's increasing population and the balance between homeownership and rental demand. However, these projections are subject to various economic factors and local market conditions.
In summary, Bush Hills has experienced a significant increase in homeownership rates, rising average home prices, and fluctuating rental markets over the past decade. The recent slight decrease in home prices, coupled with rising interest rates, indicates a shifting market dynamic. The neighborhood's ability to maintain high homeownership rates despite these changes suggests a strong local housing market resilience.
