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Kinsey, Alabama: Rising Home Values and Strong Ownership in a Growing Community
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
Kinsey, Alabama, is a small but growing community located in the southeastern part of the state. Over the past decade, this city has experienced notable changes in its housing market, with fluctuations in homeownership rates, average home prices, and average rent prices. The overall trend shows a slight increase in homeownership, rising average home prices, and gradually increasing average rent prices.
Homeownership rates in Kinsey have shown a modest upward trend since 2013. In 2013, the homeownership rate was 75%, which dipped to 70% in 2014 but gradually recovered to 75% by 2022. This increase in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $87,507, which steadily increased to $127,712 by 2022, representing a 45.9% increase over nine years. The relationship between homeownership rates and average home prices suggests that despite rising prices, residents of Kinsey have maintained a strong preference for homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in Kinsey. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with the recovery and stabilization of homeownership rates in the city. The low-interest environment likely made home financing more accessible, supporting the city's high homeownership rates even as home prices increased.
Renter percentages in Kinsey have fluctuated inversely to homeownership rates, showing a slight overall decrease from 25% in 2013 to 25% in 2022. Despite this stability in the renter population, average rent prices have seen a steady increase. In 2013, the average rent was $782, which rose to $884 by 2022, representing a 13% increase over nine years. This increase in rent prices, while significant, has been less dramatic than the rise in home prices. The relatively stable renter percentage suggests that the rental market in Kinsey has remained competitive, possibly due to population growth from 3,928 in 2013 to 4,281 in 2022.
In 2023 and 2024, Kinsey saw a continuation of the upward trend in average home prices. The average home price reached $134,633 in 2023 and further increased to $139,828 in 2024, representing a 5.4% and 3.9% year-over-year increase, respectively. These increases occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. This suggests a robust local housing market that has maintained growth even in the face of higher borrowing costs.
Looking ahead, predictive models forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $160,000 by 2029. Average rent prices are also projected to increase, possibly surpassing $1,000 per month within the same timeframe. These predictions are based on historical trends and assume relatively stable economic conditions.
In summary, Kinsey has demonstrated a resilient housing market characterized by high homeownership rates, steadily increasing average home prices, and moderately rising average rent prices. The city has maintained strong homeownership levels despite significant increases in home values, possibly aided by periods of low interest rates. The rental market, while smaller, has shown steady growth in prices without significant expansion in the renter population. As Kinsey continues to grow, these trends suggest a community that values homeownership and has a housing market that has thus far weathered economic changes effectively.
