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Green Acres: Rising Home Values and Ownership Rates Amidst Market Fluctuations
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
Green Acres, a neighborhood in Birmingham, Alabama, has experienced significant changes in homeownership rates and housing prices over the past decade. In 2022, the neighborhood had a population of 3,993 residents. The overall trend shows a slight increase in homeownership, with average home prices rising substantially, while average rent prices have remained relatively stable.
The homeownership rate in Green Acres has shown an upward trend in recent years. In 2013, 68% of residents owned their homes. This figure dropped to 56% in 2017 but rebounded significantly to 74% by 2022. During this same period, average home prices in the neighborhood increased dramatically. In 2013, the average home price was $32,373. By 2022, it had more than doubled to $81,985, representing a 153% increase over nine years. This trend suggests a strong correlation between rising home values and increased homeownership in the area.
Federal interest rates have played a role in homeownership trends in Green Acres. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates in the neighborhood decreased from 68% to 58%. However, as interest rates began to rise from 2017 onwards, homeownership rates in Green Acres also increased, reaching 74% by 2022. This trend contradicts the typical expectation that lower interest rates encourage homeownership, suggesting that other local factors may have had a more significant influence on homeownership decisions in this neighborhood.
Renter percentages in Green Acres have fluctuated inversely to homeownership rates. In 2013, 32% of residents were renters, which increased to a peak of 44% in 2017 before declining to 26% in 2022. Average rent prices have shown moderate fluctuations during this period. In 2013, the average rent was $899 per month. It peaked at $1,087 in 2014 before stabilizing around $920-$950 in recent years. The 2022 average rent was $922, representing only a 2.6% increase from 2013, despite the significant rise in home prices during the same period.
In 2023, the average home price in Green Acres decreased slightly to $78,279, and in 2024, it further declined to $76,127. This represents a 7.1% decrease from the 2022 peak. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the slight cooling in the housing market.
Looking ahead, based on recent trends, we can predict that average home prices in Green Acres may continue to experience moderate fluctuations but are likely to stabilize or show slight growth over the next five years. Average rent prices are expected to remain relatively stable, potentially increasing at a rate close to inflation. However, if interest rates remain high, this could put downward pressure on home prices and potentially lead to an increase in the renter population.
In summary, Green Acres has seen a significant increase in homeownership rates and average home prices over the past decade, despite fluctuations in federal interest rates. The neighborhood has demonstrated resilience in its housing market, with recent years showing a strong preference for homeownership among residents. The relationship between interest rates and homeownership in this area appears complex, suggesting that local economic factors and housing market dynamics play a crucial role in shaping residential patterns in Green Acres.
