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Home Values and Ownership in Wylam: A Decade of Change in Birmingham's Neighborhood
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
Wylam, a neighborhood in Birmingham, Alabama, has experienced significant changes in its housing market over the past decade. From 2013 to 2022, Wylam saw a substantial decrease in homeownership rates coupled with a dramatic increase in average home prices. The homeownership rate declined from 50% in 2013 to 43% in 2022, while the percentage of renters increased from 50% to 57%. During this same period, the average home price in Wylam rose from $22,874 to $59,627, marking a 160.7% increase.
The relationship between federal interest rates and homeownership rates in Wylam followed expected patterns initially but diverged in later years. As interest rates remained low between 2013 and 2020, ranging from 0.09% to 0.38%, homeownership rates initially increased, reaching a peak of 61% in 2016. However, homeownership began to decline from 2017 onwards despite continued low interest rates, indicating that other factors were influencing this trend.
Rental trends in Wylam showed some volatility as the renter population grew. The average rent price was $970 in 2013, decreased to $811 in 2019, and then rose to $852 in 2022. Notably, Wylam's population decreased from 4,565 in 2013 to 3,921 in 2022, potentially impacting the rental market dynamics.
In 2023 and 2024, Wylam's housing market showed signs of cooling. The average home price decreased from the 2022 peak of $59,627 to $51,010 in 2023 and further to $50,120 in 2024. This decline occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially affecting homebuying affordability.
Predictive models suggest that average home prices in Wylam may continue to experience moderate fluctuations over the next five years. Given the recent market cooling, prices could stabilize or see slight decreases in the short term before potentially resuming an upward trend. Average rent prices are projected to follow a similar pattern, with possible modest increases as the rental market adjusts to changing demand and economic conditions.
In summary, Wylam has undergone significant changes in its housing landscape over the past decade. The neighborhood has shifted towards a renter-majority population, experienced substantial increases in average home prices, and seen fluctuating rent prices. Recent data indicates a cooling in the housing market, which may influence future trends in both homeownership rates and housing costs in this Birmingham neighborhood.
