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Fisher, Alabama: Shifting Home Values and Ownership in a Unique Housing Market
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
Fisher, a neighborhood in Mobile, Alabama, has experienced significant demographic shifts and fluctuating housing market trends over the past decade. This area has transformed from a predominantly owner-occupied community to one with a higher proportion of renters, alongside substantial changes in average home prices and rent values.
The homeownership rate in Fisher has seen a dramatic decline, particularly in recent years. In 2013, the neighborhood had an even split between owners and renters at 50% each. However, by 2022, the ownership percentage had plummeted to just 31%, while the renter-occupied share rose to 69%. This shift coincided with fluctuations in average home prices. From 2014 to 2022, average home prices in Fisher increased from $24,241 to $29,388, representing a 21% rise. Despite this overall increase, the trend was not linear, with prices peaking at $31,189 in 2016 before experiencing some volatility in subsequent years.
The relationship between federal interest rates and homeownership rates in Fisher appears to follow expected patterns. As interest rates remained historically low between 2014 and 2021, ranging from 0.08% to 1.83%, one might have expected homeownership to increase. However, the opposite occurred in Fisher, suggesting that other local factors were more influential in driving the shift towards renting. The sharp increase in interest rates to 1.68% in 2022 coincided with a significant drop in homeownership from 42% in 2021 to 31% in 2022, aligning more closely with the typical relationship between higher interest rates and reduced home buying activity.
The trend in renter percentages shows a clear upward trajectory, rising from 50% in 2013 to 69% in 2022. This increase in renters has been accompanied by a substantial rise in average rent prices. In 2013, the average rent was $598, which increased to $859 by 2022, representing a 44% increase. It's worth noting that the population of Fisher decreased from 2,123 in 2013 to 1,207 in 2022, suggesting that the rising rent prices were not driven by increased demand due to population growth, but possibly by other factors such as improved housing quality or broader market forces in Mobile.
Looking at the most recent data, the average home price in Fisher for 2023 was $27,344, showing a decrease from the 2022 figure. However, in 2024, the average home price has rebounded to $30,394, indicating a recovery in the local housing market. This uptick occurs despite the federal interest rate reaching 5.33% in 2024, which is significantly higher than previous years and might typically discourage home buying.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Fisher may continue to show moderate growth, potentially reaching around $33,000 to $35,000 by 2029. This projection is based on the historical trend of gradual appreciation despite short-term fluctuations. For rent prices, the forecast suggests a continued upward trend, potentially reaching an average of $950 to $1,000 per month by 2029, assuming the current rate of increase persists.
In summary, Fisher has undergone a significant transformation from a balanced owner-renter community to one dominated by renters. This shift has occurred alongside appreciating home values and rising rent prices, despite a declining population. The neighborhood's resilience in maintaining housing value growth, even in the face of high interest rates, suggests a complex interplay of local and broader economic factors shaping its housing market dynamics.
