Loading Content...
Dothan, Alabama: Rising Home Values and Stable Ownership in the Peanut Capital
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Dothan, known as the "Peanut Capital of the World," is a vibrant city in Alabama with a population of 70,524 as of 2022. This southeastern Alabama city has experienced fluctuations in homeownership rates and housing prices over the past decade. The overall trend shows a slight decrease in homeownership, coupled with a steady increase in average home prices and average rent prices.
The homeownership rate in Dothan has seen minor fluctuations from 2013 to 2022. In 2013, the homeownership rate stood at 59%. It reached its peak at 62% in 2018 before declining to 59% in 2022. During this period, average home prices in Dothan have shown a consistent upward trend. In 2013, the average home price was $120,722. By 2022, it had risen significantly to $176,790, representing a 46.4% increase over nine years. This trend suggests that while home prices have been rising, it hasn't dramatically affected homeownership rates, which have remained relatively stable.
Federal interest rates have played a role in homeownership trends in Dothan. From 2013 to 2016, interest rates remained very low, below 0.5%, coinciding with a period of stable homeownership rates around 58-59%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), we saw a slight increase in homeownership, peaking at 62% in 2018. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) didn't correspond with an increase in homeownership, which actually decreased to 55% in 2021, possibly due to other economic factors related to the global pandemic.
Renter percentages in Dothan have generally mirrored homeownership rates, with some fluctuations. The renter percentage was 41% in 2013, rose to 45% in 2021, and then returned to 41% in 2022. Average rent prices have shown a steady increase over this period. In 2013, the average rent was $682. By 2022, it had risen to $832, a 22% increase. This rise in rent prices has occurred alongside population growth, from 67,296 in 2013 to 70,524 in 2022, suggesting increased demand for rental properties.
In 2023 and 2024, Dothan's housing market continued its upward trajectory. The average home price in 2023 reached $185,885, a 5.1% increase from 2022. In 2024, it further increased to $190,894. This growth occurred despite rising federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, the highest levels since 2007.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and rent prices over the next five years. Average home prices could potentially reach around $225,000 by 2029, assuming a similar growth rate. Average rent prices might increase to approximately $950 per month. However, these projections could be influenced by various factors including economic conditions, local development, and changes in federal interest rates.
In summary, Dothan has maintained relatively stable homeownership rates despite rising home prices. The rental market has seen steady growth in both demand and prices. The city's housing market has shown resilience, with consistent price appreciation even in the face of fluctuating interest rates and economic challenges. These trends suggest a robust and growing housing market in Dothan, reflecting the city's economic stability and attractiveness to both homeowners and renters.
