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Forest Highland: Rising Home Values and Shifting Ownership in a Growing Mobile Neighborhood
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
Forest Highland, a neighborhood in Mobile, Alabama, has experienced significant changes in its real estate market and demographics over the past decade. This area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. The homeownership rate in Forest Highland has shown considerable variations between 2013 and 2022. Starting at 71% in 2013, it peaked at 84% in 2014 before generally trending downward to 72% in 2022. Simultaneously, average home prices demonstrated a strong upward trend, increasing from $85,938 in 2013 to $157,205 in 2022, representing an impressive 83% growth over this period.
The relationship between federal interest rates and homeownership rates in Forest Highland shows some correlation. The peak homeownership rate of 84% in 2014 coincided with historically low interest rates of 0.09%. As interest rates began to rise gradually from 2016 onwards, there was a general decline in homeownership rates, though this trend was not perfectly linear. This suggests that while lower interest rates may have encouraged homeownership due to more affordable financing options, other local factors also played a significant role in homeownership decisions.
Renter percentages and average rent prices in Forest Highland have also shown interesting trends. The renter population fluctuated between 15% and 35% from 2013 to 2022. Average rent prices peaked at $1,229 in 2014 when the renter percentage was at its lowest (15%). Interestingly, as the renter population increased to 35% in 2021, the average rent actually decreased to $1,163, possibly due to increased rental supply or economic factors affecting the local market. By 2022, the renter percentage decreased to 28% while the average rent rose slightly to $1,195.
In 2023 and 2024, Forest Highland continued to see growth in average home prices. The average home price reached $161,966 in 2023 and further increased to $164,992 in 2024. This represents a 3% increase from 2022 to 2023, and a 1.9% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the neighborhood.
Looking ahead, based on the historical data and current trends, we can project potential 5-year trends for average home and rent prices in Forest Highland. Average home prices are likely to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $180,000 to $190,000 by 2029. Average rent prices, which have been more volatile, may stabilize or see modest increases, potentially reaching $1,300 to $1,400 per month by 2029, depending on local economic conditions and housing supply.
In summary, Forest Highland has experienced significant changes in its real estate landscape over the past decade. The neighborhood has seen a general trend of increasing average home prices, fluctuating homeownership rates, and varying average rent prices. The interplay between these factors, along with broader economic conditions such as interest rates, continues to shape the housing market in this Mobile neighborhood.
