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Dora, Alabama: Rising Home Values and Ownership Trends in a Small Urban Center
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
Dora, Alabama, is a small urban area with a population of 5,541 as of 2022. The city has experienced fluctuations in homeownership rates and housing prices over the past decade. Notable trends include a gradual increase in average home prices and a slight decrease in homeownership rates in recent years.
From 2013 to 2018, Dora saw a steady increase in homeownership rates, rising from 75% to 80%. During this period, average home prices also showed a moderate upward trend, increasing from $98,701 in 2013 to $107,292 in 2018. This correlation suggests that as home values appreciated, more residents were able to enter the housing market. However, since 2018, there has been a slight reversal in this trend, with homeownership rates declining to 74% by 2022, while average home prices continued to rise, reaching $168,532 in 2022.
The federal interest rates appear to have influenced homeownership trends in Dora. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates increased from 75% to 76%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates started to decline, dropping from 80% in 2018 to 74% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Dora have shown an inverse relationship to homeownership rates, naturally increasing as homeownership declined. The percentage of renters rose from 20% in 2018 to 26% in 2022. Interestingly, average rent prices have been volatile during this period. They peaked at $807 in 2017, dropped to $597 in 2019, and then rose again to $666 in 2022. This fluctuation in rent prices doesn't show a clear correlation with the increasing renter population, suggesting other factors may be influencing rental costs in the city.
In 2023 and 2024, Dora's average home prices experienced a slight dip followed by a modest recovery. The average home price in 2023 was $166,415, showing a small decrease from 2022. However, in 2024, prices rebounded slightly to $167,823. This recent trend coincides with significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting home buying affordability and market dynamics.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in Dora may continue to rise moderately over the next five years, potentially reaching around $180,000 by 2029. Rent prices, given their historical volatility, are more challenging to predict but may stabilize around $700-$750 per month, assuming no significant economic shifts or local policy changes.
In summary, Dora has experienced a recent shift from increasing homeownership to a slight decline, coinciding with rising home prices and interest rates. The rental market has shown growth in terms of occupancy but with fluctuating prices. These trends reflect the dynamic nature of the local housing market, influenced by broader economic factors and potentially local demographic changes.
