Loading Content...
Home Values and Ownership in Zip Code 36064: Pike Road's Real Estate Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Pike Road, located in zip code 36064 in Alabama, has experienced significant growth and changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates and fluctuations in both average home prices and average rent prices, reflecting the dynamic nature of its real estate landscape.
The homeownership rate in Pike Road has shown a slight decline over the years, dropping from 88% in 2013 to 84% in 2022. During this same period, average home prices have demonstrated a generally upward trend. In 2013, the average home price was $268,069, which increased to $377,289 by 2022, representing a substantial 40.7% rise over nine years. This inverse relationship between homeownership rates and average home prices suggests that as properties became more expensive, fewer residents were able to transition into homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in Pike Road. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate stabilized at 83%, halting the previous downward trend. This aligns with the well-established pattern of lower interest rates encouraging homeownership due to more affordable financing options.
The renter population in Pike Road has grown from 12% in 2013 to 16% in 2022, correlating with changes in average rent prices. The average rent price increased from $1,300 in 2013 to $1,480 in 2022, a 13.8% rise. However, this growth in rent prices has not been linear. There was a peak in 2015 at $1,536, followed by fluctuations in subsequent years. The increase in the renter population, despite rising rent prices, may be attributed to the town's overall population growth, which surged from 7,009 in 2013 to 12,454 in 2022, a remarkable 77.7% increase.
Looking at the most recent data, the average home price in Pike Road reached $388,998 in 2023 and further increased to $390,894 in 2024. This represents a modest 0.49% growth from 2023 to 2024, indicating a potential slowdown in home price appreciation. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Pike Road will continue to rise, albeit at a more moderate pace. The rate of increase is expected to slow down due to the current higher interest rates, potentially reaching around $420,000 by 2029. Average rent prices are projected to follow a similar pattern, potentially reaching approximately $1,600 by 2029, driven by continued population growth and demand for housing in the area.
In summary, Pike Road has experienced significant growth in population and housing prices over the past decade. While homeownership rates have slightly declined, they remain high at 84%. The inverse relationship between homeownership rates and average home prices, coupled with the influence of federal interest rates, has shaped the housing market dynamics in this zip code. The recent slowdown in home price appreciation and the rise in interest rates suggest a potential shift towards a more balanced market in the coming years.
