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Colonial Heights: Rising Home Values and Strong Ownership in Mobile's Suburban Gem
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
Colonial Heights, a neighborhood in Mobile, Alabama, has experienced significant changes in its real estate market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and rent costs, reflecting broader economic trends and local market conditions. The housing market in Colonial Heights has demonstrated resilience and adaptability in the face of changing economic factors.
The homeownership rate in Colonial Heights has shown variability over the years, with a general trend towards stability recently. In 2013, the neighborhood had an 86% homeownership rate, which peaked at 91% in 2015. However, this rate declined to 78% in 2018, before stabilizing around 83% in 2022. Concurrently, average home prices in the area have shown a significant upward trajectory. In 2013, the average home price was $85,244, which steadily increased to $154,093 by 2022, representing an impressive 80.8% increase over this period.
The relationship between federal interest rates and homeownership rates in Colonial Heights is noteworthy. During periods of lower interest rates, such as from 2013 to 2016 when rates were below 0.5%, homeownership rates remained relatively high, ranging from 86% to 91%. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, there was a corresponding dip in homeownership rates to 78%. However, despite further increases in interest rates, homeownership rates stabilized around 83% from 2020 to 2022, suggesting other local factors may have influenced housing decisions.
Renter percentages and average rent prices in Colonial Heights have shown interesting trends. The renter population fluctuated from a low of 9% in 2015 to a high of 22% in 2018, before settling at 17% in 2022. Average rent prices have been volatile, starting at $838 in 2013, peaking at $976 in 2021, and then decreasing to $855 in 2022. These fluctuations in rent prices and renter percentages may be influenced by changes in the neighborhood's population, which varied from 2,942 in 2015 to 3,423 in 2022.
Looking at the most recent data, the average home price in Colonial Heights reached $159,043 in 2023 and further increased to $164,082 in 2024. This represents a continued upward trend in property values, with a 3.2% increase from 2023 to 2024. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homebuying decisions in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Colonial Heights will continue to rise, potentially reaching around $190,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices are expected to follow a more moderate increase, potentially stabilizing around $1,000 per month by 2029, assuming economic conditions remain relatively stable.
In summary, Colonial Heights has demonstrated resilience in its housing market, with a generally high rate of homeownership and steadily increasing property values. The neighborhood has weathered fluctuations in both ownership rates and rental prices, suggesting a dynamic and adaptable real estate environment. The recent uptick in both home prices and interest rates will likely play a significant role in shaping the area's housing landscape in the coming years, potentially influencing affordability and homeownership trends.
