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Glen Acres: Fluctuating Home Values and Ownership Rates Reflect Economic Shifts
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
Glen Acres, a neighborhood in Mobile, Alabama, has experienced significant fluctuations in its housing market and population dynamics over the past decade. This area has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. The homeownership rate in Glen Acres has shown a general decline over the years, with some fluctuations. In 2013, the homeownership rate stood at 55%, but by 2021, it had dropped to 38%, before rebounding slightly to 45% in 2022. This downward trend in homeownership coincided with a steady increase in average home prices. In 2014, the average home price was $82,533, and it rose consistently to reach $142,702 by 2022, representing a substantial 73% increase over eight years. The relationship between federal interest rates and homeownership rates in Glen Acres appears to follow the expected pattern. As interest rates remained low from 2013 to 2016, hovering between 0.09% and 0.4%, the homeownership rate remained relatively stable, ranging from 51% to 55%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, the homeownership rate showed some volatility, dropping to 50% in 2020 before falling further to 38% in 2021.
Renter percentages in Glen Acres have generally increased as homeownership rates declined. The renter-occupied percentage rose from 45% in 2013 to 62% in 2021, before slightly decreasing to 55% in 2022. Interestingly, average rent prices did not consistently follow this upward trend in renter occupancy. Average rent peaked at $860 in 2013 and generally declined over the following years, reaching a low of $652 in 2021 before increasing slightly to $695 in 2022. This trend might be influenced by factors such as changes in housing supply, local economic conditions, or shifts in the rental market dynamics.
In 2023 and 2024, we observe a slight reversal in the upward trend of average home prices in Glen Acres. The average home price in 2023 was $142,335, showing a marginal decrease from 2022. This trend continued into 2024, with the average home price further declining to $140,727. Notably, these price adjustments coincide with significant increases in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contribute to cooling the housing market and moderating home prices.
Looking ahead, predictive models suggest that average home prices in Glen Acres may continue to experience moderate declines or stabilization over the next five years, influenced by the current high-interest rate environment. However, as the market adjusts, we might see a gradual return to price appreciation, albeit at a slower pace than the rapid increases observed in the previous decade. Average rent prices are projected to show a slight upward trend, potentially driven by continued demand for rental properties and overall inflation pressures.
In summary, Glen Acres has undergone significant changes in its housing market, characterized by declining homeownership rates, rising home prices until recent years, and fluctuating rent prices. The neighborhood's dynamics appear to be closely tied to broader economic factors, particularly interest rates. The recent stabilization and slight decline in home prices, coupled with high interest rates, suggest a potential shift in the market that could influence both homeownership and rental trends in the coming years.
