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Crossville, Alabama: Rising Home Values and Ownership Rates in a Decade of Change
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
Crossville, a town in Alabama, has experienced significant demographic and housing market changes over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices, providing insights into the local real estate landscape.
The homeownership rate in Crossville has fluctuated over the years, showing a general upward trend. In 2013, the homeownership rate was 66%, which increased to 75% by 2022. This 9% increase indicates a growing preference for homeownership in the town. Concurrently, average home prices have risen substantially. In 2013, the average home price was $95,118, which more than doubled to $173,904 by 2022, representing an 82.8% increase over nine years.
The relationship between federal interest rates and homeownership rates in Crossville appears to follow the general trend of lower interest rates encouraging homeownership. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates remained relatively high at 70% and 69%. However, as interest rates began to rise in 2022 to 1.68%, the homeownership rate actually increased to 75%, suggesting other local factors may also influence homeownership decisions in Crossville.
Renter percentages have inversely mirrored the homeownership trends, decreasing from 34% in 2013 to 25% in 2022. Despite this decrease in the renter population, average rent prices have shown a consistent upward trend. In 2013, the average rent was $428, which increased to $765 by 2022, marking a 78.7% rise. This significant increase in rent prices, despite a smaller renter population, could be attributed to various factors such as improved rental property quality or increased demand for the available rental units.
In 2023 and 2024, the housing market in Crossville continued to evolve. The average home price reached $181,589 in 2023 and slightly increased to $181,783 in 2024, showing a stabilization in home values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and affordability.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. Average home prices in Crossville may continue to rise, but at a more moderate pace, potentially reaching around $200,000 by 2029. Rent prices could also continue their upward trajectory, possibly approaching $900-$1000 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Crossville has seen a notable increase in homeownership rates and substantial growth in both average home prices and rent prices over the past decade. The town's real estate market has demonstrated resilience and growth, with homeownership becoming increasingly prevalent. The recent stabilization in home prices and the significant rise in interest rates may shape the market dynamics in the coming years, potentially affecting affordability and homeownership trends.
