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Inglenook's Housing Market: Rising Home Values Amidst Declining Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Inglenook, a neighborhood in Birmingham, Alabama, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a general decline in owner-occupied housing, while average home prices have shown a substantial increase, particularly in recent years.
The homeownership rate in Inglenook has fluctuated but overall decreased from 51% in 2013 to 37% in 2022. During this same period, average home prices in the neighborhood rose dramatically, from $19,507 in 2013 to $63,271 in 2022, representing a 224% increase. This inverse relationship suggests that rising home prices may have made homeownership less attainable for residents. The most significant jump in average home prices occurred between 2020 and 2021, with a 48% increase from $36,704 to $54,340.
Federal interest rates have played a role in homeownership trends in Inglenook. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates in Inglenook remained fairly stable, hovering around 48-49%. However, as interest rates began to rise sharply in 2022 to 1.68%, the homeownership rate in Inglenook dropped to its lowest point of 37%, indicating a potential correlation between higher interest rates and decreased homeownership.
As homeownership declined, the percentage of renters in Inglenook increased from 49% in 2013 to 63% in 2022. Average rent prices, however, have not shown a consistent upward trend. In 2013, the average rent was $991, and it fluctuated over the years, reaching a low of $918 in 2019 before rising to $947 in 2022. The highest average rent was recorded in 2021 at $1,078. The population of Inglenook has been declining, from 5,299 in 2015 to 4,312 in 2022, which may have affected the dynamics of the rental market.
In 2023, the average home price in Inglenook decreased slightly to $60,627, and in 2024 it further declined to $58,301. This represents a 4.3% decrease from 2022 to 2023 and a further 3.8% decrease from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may have contributed to the cooling of home prices.
Looking ahead, based on recent trends, it's projected that average home prices in Inglenook may continue to stabilize or slightly decrease over the next five years, potentially settling around $55,000 to $60,000. Average rent prices are expected to remain relatively stable, possibly fluctuating between $950 and $1,100, influenced by the neighborhood's declining population and economic factors.
In summary, Inglenook has experienced a significant shift from homeownership to renting over the past decade, coinciding with a substantial increase in average home prices. Recent data shows a slight cooling in the housing market, possibly influenced by rising interest rates. The rental market has remained relatively stable despite the increase in renter population, suggesting a balanced supply and demand. These trends indicate a changing demographic and economic landscape in Inglenook, with affordability playing a crucial role in housing decisions.
