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Ferry Neighborhood: Rising Home Values Amidst Fluctuating Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Ferry neighborhood in Mobile, Alabama, has experienced significant changes in its housing market over the past decade. This small community has seen notable shifts in homeownership rates and substantial increases in both average home prices and rent prices, reflecting broader economic trends and local market dynamics. From 2013 to 2022, the Ferry neighborhood witnessed a fluctuating but overall declining trend in homeownership rates. The rate stood at 70% in 2013, peaked at 84% in 2016, and then declined to 66% by 2022. During this same period, average home prices in the neighborhood showed a remarkable increase. In 2014, the average home price was $54,314, and by 2022, it had more than doubled to $112,900, representing a 108% increase over eight years. The relationship between federal interest rates and homeownership rates in Ferry demonstrates some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates increased from 70% to 84%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 66%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Ferry have shown an inverse relationship to homeownership rates, naturally increasing as homeownership declined. The renter population grew from 16% in 2016 to 34% in 2022. Concurrently, average rent prices demonstrated a general upward trend. In 2013, the average rent was $828, which increased to $1,005 by 2022, representing a 21.4% increase over nine years. This rise in rent prices occurred alongside population fluctuations, with the neighborhood's population varying between 1,063 and 1,351 residents during this period.
In 2023 and 2024, the Ferry neighborhood continued to see growth in average home prices. The average home price reached $117,446 in 2023 and further increased to $118,688 in 2024. This represents a 4% increase from 2022 to 2023 and a modest 1.1% increase from 2023 to 2024. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics in the neighborhood.
Looking ahead, based on the observed trends, it is projected that average home prices in Ferry will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could potentially reach around $130,000 to $140,000 by 2029. Average rent prices are also expected to increase, possibly reaching $1,200 to $1,300 per month by 2029, driven by the growing renter population and overall housing market appreciation.
In summary, the Ferry neighborhood has experienced a significant increase in average home prices and a moderate rise in average rent prices over the past decade. The community has shifted from predominantly owner-occupied to a more balanced mix of owners and renters. With rising home prices and higher interest rates, this trend of increasing renter populations may continue in the near future, potentially putting upward pressure on rent prices while possibly slowing the rate of increase in home values.
