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Home Values and Ownership in Calera: A Quarry Town's Housing Market Analysis
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
Calera, Alabama, a rapidly growing city in Shelby County, has maintained a consistently high homeownership rate averaging around 80% from 2013 to 2022, despite steadily increasing average home prices. Known for its picturesque surroundings and vibrant community, Calera has experienced significant population growth over the past decade. The city's housing market demonstrates an interesting dynamic between homeownership rates and average home prices. In 2013, the homeownership rate was 80% with an average home price of $132,598. By 2022, the homeownership rate remained steady at 81%, while the average home price had increased significantly to $245,695. This trend suggests that Calera's residents have been able to keep pace with the rising home values, possibly due to strong local economic conditions or attractive financing options.
Federal interest rates have influenced homeownership trends in Calera. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), the homeownership rate in Calera remained stable at around 80%. As interest rates began to rise from 2017 to 2019 (1% to 2.16%), there was a slight increase in homeownership, reaching 83% in 2018. This could be attributed to residents taking advantage of still-favorable rates before potential further increases. The dramatic drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with a slight decrease in homeownership to 81%, possibly due to economic uncertainties during the pandemic.
Renter percentages and average rent prices in Calera have shown some fluctuations. In 2013, 19% of residents were renters, with an average rent of $835. The renter percentage peaked at 21% in 2014, with average rent rising to $851. Interestingly, as the population grew from 16,634 in 2013 to 19,792 in 2022, the renter percentage decreased to 19%, while average rent increased to $1,049. This suggests that despite population growth, Calera has managed to maintain a relatively stable rental market, with a slight preference towards homeownership.
In 2023 and 2024, Calera's housing market continued to evolve. The average home price in 2023 was $251,896, showing a modest increase from 2022. In 2024, the average home price further rose to $253,744. Concurrently, federal interest rates increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in Calera.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for Calera's housing market over the next five years. Average home prices are likely to continue their upward trajectory, albeit at a more moderate pace due to higher interest rates. We might expect average home prices to reach around $275,000 to $290,000 by 2029. Average rent prices could also see continued growth, potentially reaching $1,200 to $1,300 per month by 2029, reflecting the city's ongoing population growth and demand for housing.
In summary, Calera has demonstrated a robust and stable housing market characterized by high homeownership rates and steadily increasing property values. The city has maintained a balance between homeownership and rental options, even as its population has grown significantly. The recent rise in interest rates and home prices presents new challenges, but Calera's strong fundamentals suggest it is well-positioned to adapt to changing market conditions in the coming years.
