Loading Content...
Jacksonville, Alabama: Home Values Rise Amidst University Town's Housing Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Jacksonville, Alabama, a vibrant city in Calhoun County, is home to Jacksonville State University and has experienced significant changes in its housing market over the past decade. The city has seen an overall increase in homeownership rates and average home prices, alongside fluctuations in rental prices. From 2013 to 2022, Jacksonville's homeownership rate increased from 51% to 53%. This trend coincided with a substantial rise in average home prices, which grew from $136,861 in 2013 to $191,184 in 2022, representing a 39.7% increase. The most notable surge in home prices occurred between 2020 and 2022, with a 22% increase from $156,619 to $191,184. During this period, homeownership briefly peaked at 56% in 2021 before returning to 53% in 2022.
Federal interest rates have significantly influenced Jacksonville's homeownership trends. The period of historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.4%, likely contributed to the relatively stable homeownership rates observed during this time. The slight increase in homeownership to 56% in 2021 coincided with the interest rate reaching its lowest point at 0.08%. As interest rates rose to 1.68% in 2022, homeownership rates slightly decreased to 53%.
Renter percentages in Jacksonville have generally mirrored the inverse of homeownership rates, fluctuating between 44% and 49% from 2013 to 2022. Average rent prices showed an overall upward trend, increasing from $626 in 2013 to $655 in 2022, a 4.6% rise. However, this trend was not linear, with a notable peak of $696 in 2016 followed by fluctuations. The city's population growth from 15,568 in 2013 to 16,567 in 2022 may have contributed to the overall increase in rent prices due to higher demand for rental properties.
In 2023 and 2024, Jacksonville's housing market continued to evolve. The average home price reached $197,980 in 2023 and further increased to $200,470 in 2024, marking a 4.9% growth over these two years. This upward trend occurred despite the significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and market dynamics.
Based on observed trends and current market conditions, projections suggest that average home prices in Jacksonville may continue to rise moderately over the next five years, potentially reaching around $220,000 by 2029. However, this growth rate might slow compared to recent years due to higher interest rates. Average rent prices could also see a modest increase, potentially reaching approximately $700 by 2029, assuming steady population growth and demand for rental properties.
In summary, Jacksonville's housing market has demonstrated resilience and growth over the past decade. The city has maintained a relatively balanced mix of homeowners and renters, with a slight trend towards increased homeownership. Despite economic fluctuations and changing interest rates, both average home prices and average rent prices have shown overall upward trajectories, reflecting the city's steady development and attractiveness to residents.
