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Crestwood North: Rising Home Values and Ownership Rates Amidst Market Volatility
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
Crestwood North, a neighborhood in Birmingham, Alabama, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a general trend of increasing homeownership and rising average home prices, with some fluctuations in recent years. The ownership percentage in Crestwood North has shown an overall upward trend, rising from 69% in 2013 to 75% in 2022. This increase in homeownership coincided with a substantial rise in average home prices, which grew from $166,241 in 2013 to $351,254 in 2022, representing a 111% increase over nine years. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $284,432 to $351,254, a 23.5% increase in just two years.
Federal interest rates have played a significant role in homeownership trends in Crestwood North. The period of historically low interest rates from 2013 to 2021, ranging from 0.08% to 0.4%, coincided with the increase in homeownership rates from 69% to 78%. This correlation suggests that lower interest rates made home financing more accessible, encouraging more residents to purchase homes. The slight dip in homeownership to 75% in 2022 may be attributed to the sharp increase in interest rates to 1.68% that year.
Renter percentages in Crestwood North have generally decreased as homeownership rates increased, falling from 31% in 2013 to 25% in 2022. Interestingly, average rent prices have shown significant volatility. They peaked at $1,436 in 2017 before declining to $860 in 2022, a 40% decrease. This drop in average rent prices, coupled with the increase in homeownership, suggests a shift in the local housing market dynamics, possibly influenced by changing demographics or economic factors in the area.
In 2023 and 2024, Crestwood North's housing market showed signs of stabilization. The average home price in 2023 was $355,021, a slight increase from 2022, while in 2024 it marginally decreased to $354,617. This leveling off coincides with higher interest rates of 5.02% in 2023 and 5.33% in 2024, which may have cooled the rapid price growth seen in previous years.
Looking ahead, predictive models suggest a potential stabilization or slight decrease in average home prices over the next five years, given the current higher interest rate environment. Average rent prices may see a moderate increase as the rental market adjusts to recent declines and potential shifts in housing preferences. However, these trends could be influenced by broader economic factors and local market conditions.
In summary, Crestwood North has experienced a significant increase in homeownership and average home prices over the past decade, with recent years showing signs of market stabilization. The interplay between federal interest rates, homeownership rates, and property values has been evident, highlighting the complex dynamics of the local real estate market. As the neighborhood continues to evolve, these trends will likely shape its housing landscape in the coming years.
