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Home Values and Ownership Trends in Zip Code 35816: Huntsville's Dynamic Housing Market
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 35816, located in Huntsville, Alabama, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a dynamic shift in its real estate landscape, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 35816 has fluctuated over the years, showing a general decline followed by a recent uptick. In 2013, the homeownership rate was 26%, which dropped to its lowest point of 21% in 2017 and 2018. However, there has been a notable increase in recent years, with the rate rising to 30% in 2022. This trend correlates interestingly with average home prices in the area. In 2013, the average home price was $67,221, which steadily increased to $152,919 by 2022, representing a substantial 127% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, the period of historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%) coincided with a decline in homeownership rates from 26% to 24%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates also started to increase, reaching 30% in 2022. This suggests that other local factors may have had a stronger influence on homeownership rates than national interest rate trends in this particular area.
Renter percentages in zip code 35816 have shown an inverse relationship to homeownership rates, as expected. The renter-occupied percentage peaked at 77% in 2017 and 2018, coinciding with the lowest homeownership rates. Since then, it has slightly decreased to 70% in 2022. Average rent prices have generally increased over time, rising from $687 in 2013 to $729 in 2022, a 6.1% increase. It's worth noting that the population in this zip code has also grown from 14,913 in 2013 to 17,225 in 2022, potentially contributing to the demand for rental properties and the upward pressure on rent prices.
Looking at the most recent data, the average home price in zip code 35816 reached $161,783 in 2023 and further increased to $162,119 in 2024. This represents a continued upward trend in home values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying activities in the area.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and rent prices in zip code 35816. Based on the historical data and current market conditions, average home prices could potentially reach around $180,000 to $200,000 by 2029. Average rent prices may also continue to rise, potentially reaching $800 to $850 per month in the same timeframe.
In summary, zip code 35816 has experienced a recent resurgence in homeownership rates, coupled with significant increases in average home prices. The rental market remains strong, with a majority of residents still renting, and rent prices showing steady growth. The area's growing population and rising property values suggest a robust real estate market, with potential for continued appreciation in both home values and rental rates in the coming years.
