Loading Content...
Fairview, Birmingham: Home Values Triple Amid Shifting 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
Fairview, a neighborhood in Birmingham, Alabama, has experienced notable fluctuations in its housing market over the past decade. This area has seen shifts in homeownership rates and significant changes in both average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Fairview has shown a slight overall decline from 2013 to 2022, with some fluctuations in between. In 2013, the homeownership rate stood at 57%, dropping to a low of 42% in 2018 before recovering to 55% by 2022. Interestingly, this trend has coincided with a substantial increase in average home prices. In 2013, the average home price was $25,558, which more than tripled to $79,647 by 2022. This sharp rise in home prices may have contributed to the initial decline in homeownership, as affordability became a challenge for many residents.
Federal interest rates have played a significant role in shaping homeownership trends in Fairview. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 52% to 57%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed more volatility in homeownership rates. The lower interest rates in the earlier years likely made mortgages more affordable, supporting homeownership despite rising home prices.
The rental market in Fairview has also experienced notable changes. The percentage of renters increased from 40% in 2013 to a peak of 57% in 2018, before settling at 45% in 2022. Average rent prices have shown an upward trend, rising from $670 in 2013 to $863 in 2022, an increase of nearly 29%. This rise in rent prices, coupled with the increase in the renter population, suggests a growing demand for rental properties in the area. The population fluctuations, ranging from a low of 2,069 in 2013 to a high of 2,816 in 2016, may have influenced these rental market dynamics.
In 2023 and 2024, we see a slight reversal in the upward trend of average home prices. The average home price in Fairview decreased marginally from $79,647 in 2022 to $79,379 in 2023, and further to $76,173 in 2024. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to cooling the housing market, making mortgages more expensive and potentially reducing demand.
Looking ahead, our predictive models suggest a potential stabilization in both home prices and rent prices over the next five years. Average home prices are expected to maintain a slight downward trend, potentially settling around $70,000 by 2029. This forecast takes into account the current high interest rates and their potential impact on housing demand. Average rent prices are predicted to continue a modest upward trajectory, potentially reaching around $900 per month by 2029, reflecting ongoing demand for rental properties in the area.
In summary, Fairview has experienced significant changes in its housing market over the past decade. The neighborhood has seen a substantial increase in average home prices, a slight overall decline in homeownership rates, and a moderate rise in average rent prices. Recent data suggests a potential cooling of the housing market, likely influenced by rising interest rates. Moving forward, we anticipate a period of stabilization in both the ownership and rental markets, with modest changes in prices over the next five years.
