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Home Values and Ownership in Zip Code 36474: A Decade of Growth in River Falls, Alabama
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
Zip code 36474, located in River Falls, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This rural area has seen fluctuations in its population and housing market, reflecting broader economic trends and local dynamics. The homeownership rate in zip code 36474 has remained relatively high, ranging from 82% to 89% between 2013 and 2022. This trend indicates a strong preference for homeownership in the area. In 2013, the homeownership rate was 85%, and it reached its peak of 89% in 2019. By 2022, it settled back to 85%. Concurrently, average home prices have shown an upward trajectory. In 2017, the average home price was $108,114, and it rose steadily to reach $148,466 in 2022, representing a 37.3% increase over five years.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 36474. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.4%), homeownership rates remained stable around 82-85%. As interest rates began to rise in 2017 (1%) and 2018 (1.83%), we observed a slight increase in homeownership to 84% in 2018, possibly due to buyers rushing to secure mortgages before further rate increases. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a surge in homeownership to 86% and 87% respectively, as low financing costs made homebuying more attractive.
Renter percentages in zip code 36474 have fluctuated inversely to homeownership rates, ranging from 11% to 18% between 2013 and 2022. The highest renter percentage was observed in 2015 at 18%, while the lowest was in 2019 at 11%. Average rent prices have shown overall growth, albeit with some fluctuations. In 2013, the average rent was $531, which decreased to $486 in 2014. It then gradually increased to $565 in 2021 before slightly decreasing to $554 in 2022. These rent price changes don't always directly correlate with renter percentages, suggesting other factors like local economic conditions and housing supply also influence the rental market.
In 2023, the average home price in zip code 36474 decreased to $142,965, a 3.7% drop from 2022. This trend continued into 2024, with prices further decreasing to $142,036. Interestingly, this decline in home prices occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This suggests that local market factors may be outweighing the impact of higher borrowing costs on home prices in this area.
Looking ahead, predictive models suggest that average home prices in zip code 36474 may continue to experience modest fluctuations over the next five years. Given the recent trend, prices could stabilize or potentially see a slight increase, assuming local economic conditions improve. For rent prices, the forecast indicates a potential for gradual increases, possibly reaching around $600 by 2029, based on the historical growth rate observed from 2013 to 2022.
In summary, zip code 36474 has maintained a high rate of homeownership despite fluctuations in home prices and interest rates. The area has seen significant growth in average home values from 2017 to 2022, followed by a recent downturn. Rent prices have generally trended upward with some variability. The interplay between federal interest rates, local economic factors, and housing market dynamics will continue to shape the future of homeownership and rental trends in this Alabama town.
