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Lakeview, Dothan: Home Values and Ownership Trends in a Vibrant Alabama Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lakeview, a neighborhood in Dothan, Alabama, has experienced fluctuating homeownership rates and housing prices over the past decade. This community, known for its proximity to the city center, has seen interesting shifts in its real estate landscape, reflecting broader economic trends and local market dynamics.
The homeownership rate in Lakeview has shown a general upward trend, with some fluctuations. In 2013, the homeownership rate stood at 58%, gradually increasing to 67% by 2022. This overall rise in homeownership coincides with changes in average home prices. The average home price in Lakeview increased from $57,666 in 2021 to $65,272 in 2022, representing a significant 13.2% increase in just one year.
The relationship between federal interest rates and homeownership rates in Lakeview appears to follow expected patterns. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, the homeownership rate in Lakeview generally trended upward. This aligns with the principle that lower interest rates make mortgages more affordable, encouraging home buying. The sharp increase in homeownership from 61% in 2021 to 67% in 2022, despite the interest rate rising to 1.68%, might suggest a rush to buy homes before anticipated further rate increases.
Renter percentages in Lakeview have inversely mirrored the homeownership trends, decreasing from 42% in 2013 to 33% in 2022. Average rent prices have shown volatility during this period. The average rent peaked at $718 in 2015, then decreased to $644 in 2016, before fluctuating and reaching $703 in 2022. This trend doesn't show a clear correlation with the declining renter percentage, suggesting that other factors, such as local economic conditions or housing supply, may be influencing rent prices more strongly than demand from renters.
Looking at the most recent data, the average home price in Lakeview slightly decreased from $65,272 in 2022 to $65,181 in 2023, and further to $64,489 in 2024. This modest decline occurs as federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices, as higher borrowing costs can reduce demand in the housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Lakeview may experience a period of stability or slight decline in the short term due to the current high interest rate environment. However, as the market adjusts, we could see a gradual increase in home prices over the next 3-5 years, assuming interest rates stabilize or decrease. For rent prices, we predict a modest upward trend, potentially reaching an average of $750-$800 per month within the next five years, driven by overall inflation and potential increased demand for rentals if high interest rates persist and deter some potential homebuyers.
In summary, Lakeview has seen a notable increase in homeownership rates over the past decade, coupled with rising home values. The inverse relationship between homeownership and renter percentages is clear, while rent prices have shown more volatility. Recent data suggests a cooling in the housing market, likely influenced by rising interest rates. Moving forward, the neighborhood's real estate market is expected to adapt to these changing conditions, with potential for gradual growth in both home values and rent prices over the next five years.
