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Jackson Heights: Rising Home Values and Shifting Ownership in Mobile, 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
Jackson Heights, a diverse neighborhood in Mobile, Alabama, has experienced significant changes in its housing market over the past decade. The area has seen a general trend of decreasing homeownership rates coupled with rising average home prices and rent costs. This inverse relationship between homeownership and home prices has been a defining characteristic of the neighborhood's housing dynamics.
The data shows a clear pattern of declining homeownership as home prices increased. In 2013, the homeownership rate was 41% with an average home price of $114,904. By 2022, as the average home price rose to $185,044, the homeownership rate fell to 39%. This trend suggests that the rising cost of homes may have made ownership less accessible for some residents in the area.
Federal interest rates have played a significant role in shaping homeownership trends in Jackson Heights. From 2013 to 2016, when interest rates were extremely low (between 0.09% and 0.40%), homeownership rates actually increased from 41% to 48%. However, as interest rates began to rise more significantly from 2017 onwards, homeownership rates declined. By 2022, with interest rates at 1.68%, the homeownership rate had fallen to 39%, indicating that higher borrowing costs may have deterred potential buyers.
The rental market in Jackson Heights has shown a positive correlation between renter percentages and average rent prices. In 2013, 59% of residents were renters, with an average rent of $682. By 2022, the renter percentage had increased to 61%, while the average rent rose to $835. This upward trend in both renter occupancy and rent prices suggests a growing demand for rental properties in the area. The neighborhood's population fluctuated during this period, peaking at 3,817 in 2012 and settling at 3,117 in 2022, which may have influenced rental market dynamics.
Recent years have seen continued growth in average home prices in Jackson Heights. The average home price reached $191,921 in 2023 and further increased to $198,662 in 2024, representing a significant 7.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates in the neighborhood.
Predictive models suggest that average home prices in Jackson Heights will continue to rise over the next five years, potentially reaching around $230,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,000 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In conclusion, Jackson Heights has experienced a decline in homeownership rates alongside rising home prices and rents. The interplay between federal interest rates, housing affordability, and population changes has shaped the neighborhood's housing market. As average home prices and rents continue to climb, the community may face challenges in maintaining a diverse mix of homeowners and renters in the coming years.
