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East Brewton's Housing Market: Rising Home Values and Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
East Brewton, a small city in Alabama, has experienced notable shifts in its housing landscape over the past decade. The city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
The homeownership rate in East Brewton has shown a general decline from 2013 to 2018, followed by a recent upward trend. In 2013, 64% of housing units were owner-occupied. This percentage dropped to 49% by 2018, indicating a significant shift towards renting. However, from 2019 onwards, there has been a reversal of this trend, with homeownership rising to 61% by 2022. Interestingly, this recent increase in homeownership coincides with a steady rise in average home prices. The average home price in East Brewton increased from $57,317 in 2016 to $87,266 in 2022, representing a substantial 52% increase over six years.
The relationship between federal interest rates and homeownership rates in East Brewton appears to follow expected patterns. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.4%), the city experienced a decline in homeownership, possibly due to investors purchasing properties for rental purposes. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), and then dropped significantly in 2020 (0.38%) and 2021 (0.08%), homeownership rates started to recover. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in East Brewton show an inverse relationship to homeownership rates, peaking at 51% in 2017 and 2018 before declining to 39% in 2022. Average rent prices have fluctuated over the years, with a general upward trend. The average rent increased from $520 in 2015 to $703 in 2022, a 35% rise. This increase in average rent prices, coupled with the growing population (from 3,768 in 2015 to 4,150 in 2022), suggests a tightening rental market despite the recent shift towards homeownership.
In 2023 and 2024, East Brewton continued to see growth in average home prices, reaching $95,801 in 2023 and $99,952 in 2024. This represents a 14.5% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, based on current trends, we can forecast that average home prices in East Brewton may continue to rise over the next five years, potentially reaching around $120,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $800 per month within the same timeframe. These projections assume continued population growth and economic stability in the region.
In summary, East Brewton has experienced a recent resurgence in homeownership after a period of decline, coinciding with rising average home prices. The rental market has seen steady increases in average rent prices, reflecting growing demand. The city's housing market appears to be dynamic, responsive to economic factors such as interest rates, and poised for continued growth in both home values and rental costs in the coming years.
