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Jackson, Alabama: Rising Home Values and Ownership Amidst Interest Rate Fluctuations
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
Jackson, Alabama, a small municipality with a population of 6,300 as of 2022, has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices in Jackson from 2013 to 2024.
The homeownership rate in Jackson has shown a notable upward trend, increasing from 66% in 2013 to 73% in 2022. This rise in homeownership coincided with fluctuations in average home prices. In 2016, the average home price was $92,051, which steadily increased to $139,624 by 2022, representing a 51.7% increase over six years. This trend suggests that despite rising home prices, more residents were able to enter the housing market.
The relationship between federal interest rates and homeownership rates in Jackson appears to follow the general principle that lower interest rates encourage homeownership. From 2013 to 2020, when interest rates were historically low (ranging from 0.09% to 0.38%), homeownership rates increased from 66% to 71%. However, even as interest rates began to rise in 2022 to 1.68%, homeownership remained high at 73%, indicating other factors may also be influencing this trend.
Conversely, the percentage of renters in Jackson has decreased from 34% in 2013 to 27% in 2022. Despite this decline, average rent prices have shown some volatility. In 2013, the average rent was $611, which decreased to $502 in 2016 before rising again to $601 in 2022. This fluctuation in rent prices, coupled with the decreasing renter population, suggests a complex rental market dynamic possibly influenced by changes in housing supply and demand.
As of 2024, the average home price in Jackson stands at $135,520, showing a slight decrease from the 2023 value of $137,735. This recent decline occurs alongside a significant increase in federal interest rates, which reached 5.33% in 2024, up from 5.02% in 2023. These figures indicate a potential cooling in the housing market, possibly due to the higher cost of borrowing.
Looking ahead, predictive models suggest that average home prices in Jackson may continue to experience moderate growth over the next five years, albeit at a slower pace than observed in the 2016-2022 period. Average rent prices are expected to stabilize and potentially see slight increases, reflecting the overall housing market trends and economic conditions.
In summary, Jackson has seen a substantial increase in homeownership rates over the past decade, accompanied by rising average home prices. The rental market has experienced a decline in the percentage of renters, with fluctuating rent prices. Recent data shows a slight cooling in the housing market, likely influenced by rising interest rates. These trends highlight the dynamic nature of Jackson's housing market and suggest a continued evolution in the coming years.
