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Foley, Alabama: Rising Home Values and Ownership in a Growing Gulf Coast City
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
Foley, Alabama, a vibrant city located in Baldwin County, has experienced significant growth and development over the past decade. Known for its proximity to the Gulf Coast and its blend of suburban and coastal living, Foley has seen notable trends in homeownership and housing market dynamics. The city has generally maintained a strong homeownership rate, with average home prices steadily increasing and average rent prices fluctuating over time.
Homeownership in Foley has shown a consistent upward trend, rising from 63% in 2013 to 75% in 2022. This increase in homeownership coincides with a substantial rise in average home prices, which grew from $137,657 in 2013 to $288,105 in 2022, representing a 109% increase over nine years. The relationship between homeownership rates and average home prices suggests that despite rising costs, Foley residents have continued to prioritize homeownership, possibly due to the city's growing appeal and economic opportunities.
Federal interest rates have played a significant role in shaping homeownership trends in Foley. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership increased from 63% to 68%. This period of low interest rates likely made mortgages more accessible, encouraging home buying. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 67%. Interestingly, despite the sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership continued to climb, reaching 75% by 2022, suggesting other factors beyond interest rates were influencing home buying decisions in Foley.
Renter percentages in Foley have inversely mirrored the homeownership trend, decreasing from 37% in 2013 to 25% in 2022. Average rent prices, however, have not shown a consistent pattern. In 2013, the average rent was $973, which fluctuated over the years, reaching a peak of $1,025 in 2015 before declining to $892 in 2022. This decrease in average rent despite the growing population (from 23,239 in 2013 to 32,680 in 2022) and reduced percentage of renters is notable and may indicate efforts to maintain affordable rental options in the face of rising home prices.
Looking at the most recent data, average home prices in Foley continued to rise, reaching $301,116 in 2023 and $308,726 in 2024. This represents a 7.2% increase from 2022 to 2024, indicating a continued strong housing market. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the city.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in Foley to continue their upward trajectory, potentially reaching around $350,000 by 2029. This projection is based on the historical growth rate and assumes continued economic stability and demand in the area. Average rent prices, which have shown more volatility, are harder to predict with certainty. However, if the trend of the past few years continues, we might expect average rents to stabilize or show modest increases, potentially reaching around $950-$1,000 by 2029.
In summary, Foley has demonstrated a strong trend towards homeownership, with rates increasing despite rising home prices. The inverse relationship between homeownership and renter percentages highlights the city's shifting housing dynamics. While federal interest rates have influenced these trends, other factors such as local economic growth and the city's attractiveness have likely played significant roles. The recent sharp increase in interest rates, coupled with continuing rises in home prices, may present new challenges for potential homebuyers in the coming years, potentially affecting the long-term homeownership trend in Foley.
