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Hillsdale, Mobile: Rising Home Values and Volatile Ownership Rates in a Dynamic Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hillsdale, a neighborhood in Mobile, Alabama, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, alongside a general trend of increasing home values and rent prices, reflecting broader economic changes and local market conditions.
The homeownership rate in Hillsdale has shown considerable variability, ranging from a low of 34% in 2016 to a high of 49% in 2019. This fluctuation coincides with changes in average home prices, which have generally trended upward. In 2010, the average home price in Hillsdale was $85,095. By 2022, it had increased to $115,142, representing a 35.3% growth over 12 years. Notably, the most significant price increases occurred between 2019 and 2022, with a jump from $86,864 to $115,142, a 32.6% increase in just three years.
Federal interest rates have played a role in shaping homeownership trends in Hillsdale. The period from 2010 to 2015 saw historically low interest rates, ranging from 0.09% to 0.18%. During this time, homeownership rates in Hillsdale remained relatively stable, hovering around 40%. However, as interest rates began to rise from 2016 onwards, reaching 1.83% in 2018, we observed some fluctuations in homeownership rates, with a notable increase to 43% in 2018 and 49% in 2019.
Renter percentages in Hillsdale have generally been higher than homeownership rates, ranging from 51% to 66% between 2013 and 2022. The average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $670, which increased to $744 by 2022, representing an 11% increase over nine years. Interestingly, the highest average rent of $754 was recorded in 2019, coinciding with the highest homeownership rate. The population of Hillsdale has also fluctuated, reaching a peak of 1,871 residents in 2020 before declining to 1,579 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, Hillsdale's housing market continued to show growth. The average home price in 2023 was $124,208, a 7.9% increase from 2022. In 2024, it further increased to $124,892, albeit at a slower rate of 0.5%. This growth occurred despite significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, the highest levels since 2007.
Looking ahead, predictive models suggest a continued upward trend in both average home prices and rent prices over the next five years. Home prices are projected to increase by approximately 2-3% annually, potentially reaching around $140,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially rising to around $825 per month by 2029, assuming consistent economic conditions and local market factors.
In summary, Hillsdale has experienced significant changes in its housing market over the past decade. The neighborhood has seen a general trend of increasing home values and rent prices, with notable fluctuations in homeownership rates. The recent sharp rise in interest rates has not yet significantly dampened home price growth, suggesting strong underlying demand in the area. As Hillsdale continues to evolve, these trends in homeownership, home prices, and rental rates will likely play a crucial role in shaping the neighborhood's future demographic and economic landscape.
