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Clanton, Alabama: Rising Home Values and Shifting Ownership in the Peach Capital
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
Clanton, Alabama, a city spanning 23.1 square miles, has experienced notable shifts in its housing market over the past decade. Known for its annual Peach Festival, Clanton has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
From 2013 to 2022, Clanton's homeownership rate fluctuated, starting at 68% in 2013, peaking at 73% in 2015 and 2016, and settling at 67% in 2022. During this period, average home prices showed a consistent upward trend, rising from $121,591 in 2013 to $207,519 in 2022, representing a significant 70.7% increase over nine years.
The relationship between federal interest rates and homeownership rates in Clanton presents an interesting pattern. In 2013, when interest rates were low at 0.11%, homeownership was at 68%. As interest rates remained low through 2016, homeownership increased to 73%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined slightly to 67%. This trend aligns with the general expectation that lower interest rates encourage homeownership due to more affordable financing options.
Renter percentages in Clanton have shown an inverse relationship to homeownership rates. The renter population increased from 31% in 2013 to 33% in 2022. Average rent prices fluctuated during this period, starting at $795 in 2013, dropping to a low of $702 in 2017 and 2018, before rising again to $749 in 2022. The city's population growth from 15,381 in 2013 to 15,571 in 2022 may have contributed to the overall increase in rental demand and prices.
In 2023 and 2024, Clanton's housing market continued to evolve. The average home price reached $211,506 in 2023 and further increased to $212,316 in 2024, showing a continued upward trend. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for Clanton's housing market over the next five years. Average home prices are likely to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. A conservative estimate might see average home prices reaching around $240,000 to $250,000 by 2029. Average rent prices, which have shown more volatility, may stabilize or see modest increases, potentially reaching $850 to $900 per month by 2029, assuming continued population growth and demand for rental properties.
In summary, Clanton's housing market has demonstrated resilience and growth over the past decade, with rising home values and a relatively stable homeownership rate. The interplay between interest rates, home prices, and rental trends suggests a dynamic market responsive to both local and national economic factors. As Clanton continues to evolve, these housing trends will play a crucial role in shaping the city's economic landscape and community development.
