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East Highlands: Declining Home Values and Shifting Ownership Trends in Dothan's Unique Neighborhood
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 Highlands, a neighborhood in Dothan, Alabama, has experienced significant changes in its housing market over the past decade. The area has seen a general trend of decreasing homeownership rates, fluctuating average home prices, and steadily increasing average rent prices. These shifts reflect broader changes in the local economy and housing preferences.
The homeownership rate in East Highlands has declined from 42% in 2013 to 36% in 2022. This decrease occurred despite periods of low federal interest rates, which ranged from 0.09% to 2.16% between 2013 and 2020. The persistence of this trend suggests that local factors, such as employment opportunities or housing availability, may have had a stronger influence on homeownership rates than national interest rates during this period.
As homeownership decreased, the percentage of renters in East Highlands increased from 58% in 2013 to 64% in 2022. This shift towards renting coincided with a rise in average rent prices, from $533 in 2013 to $687 in 2022, representing a 28.9% increase over nine years. The growing renter population and rising rent prices indicate a strong demand for rental properties in the area, possibly influenced by factors such as job market changes, demographic shifts, or a preference for more flexible living arrangements.
Recent data shows a significant drop in average home prices in East Highlands. In 2021, the average home price was $42,283, which decreased to $41,612 in 2022. This downward trend continued, with prices falling to $35,619 in 2023 and further to $34,711 in 2024. This represents a substantial 16.6% decrease from 2022 to 2024. Interestingly, this price decline occurred despite a sharp rise in federal interest rates, which jumped from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. The inverse relationship between interest rates and home prices in East Highlands suggests that local market factors are strongly influencing housing values in the area.
Based on these trends, predictions for the next five years suggest that average home prices in East Highlands may continue to decrease slightly or stabilize at their current levels, assuming no major economic shifts occur. This could potentially make homeownership more accessible to some residents. However, if the trend of increasing renter populations continues, further upward pressure on average rent prices is likely. Rent could potentially reach $750-$800 per month by 2029 if the current rate of increase persists.
In summary, East Highlands has experienced a shift towards a renter-majority population over the past decade, with homeownership rates declining despite periods of low interest rates. Average home prices have recently decreased, while rent prices have steadily increased. These trends reflect a changing housing market in the neighborhood, potentially influenced by local economic factors, changing demographics, and shifting preferences in housing choices.
