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Home Values and Ownership Trends in Zip Code 35772: Stevenson's Decade of Change
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 35772, located in Stevenson, Alabama, has experienced significant changes in homeownership and housing prices over the past decade. This area, covering 181.75 square miles, has seen notable trends in both ownership rates and average home and rent prices. The homeownership rate in zip code 35772 has shown a general upward trend, particularly in recent years. In 2013, the homeownership rate stood at 67%, and by 2022, it had increased to 76%. This 9 percentage point increase coincides with a significant rise in average home prices. In 2013, the average home price was $75,644, and by 2022, it had more than doubled to $154,104. This correlation suggests that as property values increased, more residents were motivated to become homeowners, possibly viewing real estate as a valuable investment.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 35772. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. This low-interest environment likely contributed to the increase in homeownership, as it made mortgage financing more affordable for potential buyers. The homeownership rate rose from 67% in 2013 to 78% in 2020, aligning with this period of low interest rates.
Conversely, the renter population in zip code 35772 has decreased over time. In 2013, renters made up 33% of the population, but by 2022, this figure had dropped to 24%. Interestingly, despite the decrease in the renter population, average rent prices have shown a steady increase. In 2013, the average rent was $375, and by 2022, it had risen to $564, representing a 50% increase over this period. This trend suggests that while fewer people are renting, those who do are facing higher costs, possibly due to a combination of reduced rental inventory and increased property values.
Looking at the most recent data, the average home price in zip code 35772 continued to rise in 2023, reaching $159,553. In 2024, there was a slight increase to $160,968. These figures represent a continuation of the upward trend in home values observed over the past decade. Notably, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. This rise in interest rates could potentially impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 35772 will continue to increase, albeit at a more moderate pace. The average home price could potentially reach around $180,000 to $190,000 by 2029. For rent prices, the upward trend is expected to persist, with average rents potentially climbing to the $600-$650 range over the next five years.
In summary, zip code 35772 has experienced a significant increase in homeownership rates and average home prices over the past decade, likely influenced by historically low interest rates and the perception of real estate as a valuable investment. While the renter population has decreased, average rent prices have risen substantially. The recent uptick in interest rates and the continued growth in home prices suggest that the housing market in this area remains dynamic, with potential implications for affordability and homeownership trends in the coming years.
