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Dodge City, Alabama: Home Values and Ownership Trends in a Growing Small Town
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
Dodge City, Alabama, a small town with a population of 3,926 as of 2022, has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and rental costs, providing insights into the evolving real estate landscape of this growing community. Homeownership rates in Dodge City have fluctuated over the years, showing a general downward trend followed by a recent uptick. In 2013, the homeownership rate was 81%, which declined to 74% by 2021. However, 2022 saw a modest increase to 78%. This trend coincides with changes in average home prices, which have shown significant growth in recent years. The average home price in 2022 was $223,497, although specific data for earlier years is not available. The relationship between federal interest rates and homeownership rates in Dodge City follows established economic patterns. From 2013 to 2021, interest rates remained low, ranging from 0.08% to 1.68%, corresponding with relatively high homeownership rates. However, the slight decline in homeownership during this period suggests that local factors may have had a more significant influence on the housing market than interest rates alone.
Rental trends in Dodge City have shown interesting patterns. The percentage of renters increased from 19% in 2013 to 26% in 2021, before decreasing to 22% in 2022. Average rent prices have experienced substantial growth, rising from $399 in 2013 to $920 in 2022, representing a 131% increase over nine years. This surge in rental costs coincides with population growth, as the town's population increased from 3,330 in 2013 to 3,926 in 2022, potentially driving up demand for rental properties.
In 2023 and 2024, Dodge City's housing market showed signs of cooling. The average home price decreased to $217,805 in 2023 and further to $213,912 in 2024. This decline occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to the softening of home prices by reducing affordability for potential buyers.
Looking ahead, predictive models suggest that average home prices in Dodge City may continue to experience moderate declines over the next five years, potentially stabilizing around $200,000 by 2029. Average rent prices, however, are projected to maintain an upward trajectory, potentially reaching $1,100-$1,200 per month by 2029, driven by continued population growth and demand for rental properties.
In summary, Dodge City has experienced a complex interplay of factors affecting its housing market. The town has seen a general trend of declining homeownership rates, rapidly increasing rent prices, and more recently, a cooling in home prices. These trends reflect the dynamic nature of the local real estate market, influenced by population growth, economic conditions, and broader housing market forces.
