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Evergreen, Birmingham: Home Values Double Amid Ownership Rebound
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Evergreen, a neighborhood in Birmingham, Alabama, has experienced significant changes in its housing market over the past decade. From 2013 to 2022, the area saw fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rates in Evergreen followed a volatile pattern from 2013 to 2022. Starting at 41% in 2013, the percentage of owner-occupied homes decreased to a low of 27% in 2020, before rebounding to 48% in 2022. This variability coincided with substantial changes in average home prices. The average home price in 2013 was $22,650, which steadily increased to $56,475 by 2022, representing a significant 149% increase over this period.
The relationship between federal interest rates and homeownership rates in Evergreen showed some correlation. During the period of low interest rates from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates in the neighborhood remained relatively stable around 40-44%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates in Evergreen declined, reaching a low of 27% in 2020. Interestingly, despite low interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates only began to recover in 2021 and 2022, possibly indicating a delayed response to favorable financing conditions.
Renter percentages in Evergreen have shown an inverse relationship to homeownership rates. The percentage of renter-occupied homes increased from 59% in 2013 to a peak of 73% in 2020, before decreasing to 52% in 2022. Average rent prices have shown less volatility compared to home prices, but still experienced notable changes. In 2013, the average rent was $633, which decreased to $586 in 2015 before gradually increasing to $630 in 2022, representing a modest overall decrease of 0.5% over the decade.
In 2023 and 2024, Evergreen's housing market continued to evolve. The average home price in 2023 was $54,541, showing a slight decrease from 2022, while in 2024 it increased to $57,123. This occurred against a backdrop of rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and market dynamics.
Looking ahead, predictive models suggest that average home prices in Evergreen may continue their upward trajectory over the next five years, potentially reaching around $65,000 by 2029. Average rent prices are forecasted to follow a similar trend, possibly increasing to approximately $700 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Evergreen has experienced significant changes in its housing market over the past decade. The neighborhood has seen a recent resurgence in homeownership rates, substantial increases in average home prices, and relatively stable average rent prices. The interplay between these factors, along with broader economic conditions such as interest rates, will continue to shape the future of Evergreen's housing landscape.
