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Georgia Avenue: Rising Home Values and Shifting Ownership in Mobile, Alabama
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Georgia Avenue, a neighborhood in Mobile, Alabama, has experienced significant changes in its housing market over the past decade. This area has seen a general trend of increasing average home prices alongside rising rent prices, while homeownership rates have fluctuated. Recent years have shown a slight uptick in ownership percentage, indicating a dynamic real estate environment.
The homeownership rate in Georgia Avenue has varied over the years, demonstrating the neighborhood's changing dynamics. In 2013, the ownership rate stood at 37%, rising to 41% in 2014. However, it experienced a decline to 34% in 2020 before rebounding to 44% in 2022. This recent increase in homeownership coincides with a substantial rise in average home prices. The average home price in 2013 was $104,997, which steadily climbed to $200,427 by 2022, representing a remarkable 91% increase over this period.
The relationship between federal interest rates and homeownership rates in Georgia Avenue reveals some interesting correlations. For instance, the low interest rate of 0.08% in 2021 corresponded with a homeownership rate of 37%. As interest rates rose to 1.68% in 2022, the homeownership rate increased to 44%, possibly due to buyers rushing to purchase homes before rates climbed further.
Renter percentages in Georgia Avenue have fluctuated inversely to homeownership rates, reflecting the changing preferences and economic conditions of the area. In 2013, the renter percentage was 63%, which decreased to 59% in 2014 before rising to 66% in 2020. By 2022, it had fallen to 56%. Average rent prices have generally increased over this period, mirroring the trend in home prices. In 2013, the average rent was $567, which rose to $864 in 2022, marking a 52% increase. This rise in rent prices occurred despite fluctuations in the neighborhood's population, which decreased from 1,251 in 2013 to 1,121 in 2022.
In 2023, the average home price in Georgia Avenue experienced a slight decrease to $196,872, while federal interest rates rose to 5.02%. Moving into 2024, the average home price has rebounded to $203,657, with interest rates further increasing to 5.33%. These higher interest rates may impact future homeownership trends in the neighborhood, potentially affecting buying decisions and market dynamics.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Georgia Avenue to continue their upward trajectory, potentially reaching around $230,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,000 per month within the next five years if current trends persist. These projections suggest a continued strong housing market in the area.
In summary, Georgia Avenue has experienced a notable increase in both average home prices and rent prices over the past decade. The recent uptick in homeownership rates, despite rising interest rates, suggests a strong demand for housing in the area. The neighborhood's housing market has shown resilience, with property values appreciating significantly. As we move forward, residents of Georgia Avenue can expect continued growth in both the ownership and rental markets, with property values likely to remain on an upward trend.
