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Collegeville, Birmingham: Home Values Double Amid Declining Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Collegeville, a neighborhood in Birmingham, Alabama, has experienced significant changes in its real estate market over the past decade. This analysis examines the fluctuations in homeownership rates, average home prices, and rental trends from 2013 to 2024.
Homeownership rates in Collegeville have shown considerable variation between 2013 and 2022. Starting at 39% in 2013, the rate dropped to a low of 29% in 2016 before rising to 42% in 2019, and then settling at 38% in 2022. During this period, average home prices demonstrated a general upward trend, increasing from $22,578 in 2015 to $44,733 in 2022, representing a substantial 98% increase over seven years.
The relationship between federal interest rates and homeownership rates in Collegeville reveals some interesting patterns. While interest rates remained low (0.09% to 0.40%) between 2013 and 2016, homeownership rates initially declined. However, as interest rates began to rise from 2016 to 2019 (0.40% to 2.16%), homeownership rates increased from 29% to 42%. This suggests that local factors may have had a more significant impact on homeownership trends than interest rates alone.
Renter percentages in Collegeville have generally moved inversely to homeownership rates, as expected. The percentage of renters increased from 61% in 2013 to a peak of 71% in 2016, before declining to 58% in 2019 and settling at 62% in 2022. Average rent prices, however, have not consistently followed this trend. From 2013 to 2018, average rent prices decreased from $613 to $500 per month, despite the increase in renter percentage during much of this period. From 2018 to 2022, average rent prices increased to $564, aligning more closely with the slight increase in renter percentage during this time.
In 2023 and 2024, Collegeville's real estate market showed interesting developments. The average home price in 2023 was $37,977, a decrease from the 2022 price of $44,733. However, in 2024, the average home price increased slightly to $39,142. This occurred despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the rates seen in previous years.
Looking ahead, based on recent trends and current market conditions, we can project potential scenarios for the next five years. Average home prices may continue to show moderate growth, potentially reaching around $45,000 to $50,000 by 2029, assuming economic conditions remain stable. Average rent prices could also see a gradual increase, potentially reaching $600 to $650 per month in the same timeframe. However, these projections are subject to various factors including local economic conditions, housing supply, and broader market trends.
In summary, Collegeville has experienced notable fluctuations in homeownership rates and housing prices over the past decade. The neighborhood has seen a general trend of increasing average home prices, despite variations in homeownership rates. Rent prices have shown more volatility, not always aligning with changes in the renter population. The recent rise in interest rates and the slight dip in home prices in 2023 followed by a modest recovery in 2024 suggest a complex and evolving real estate market in this Birmingham neighborhood.
