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Marion, Alabama: Home Values and Ownership Trends in a City with Volatile Rent Prices
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Marion, located in Alabama, is a small urban center with a rich history dating back to the early 19th century. Known for its antebellum architecture and as the birthplace of Coretta Scott King, Marion has experienced fluctuating trends in homeownership and housing prices over the past decade. The city has seen a general decline in homeownership rates since 2017, while average home prices have shown an overall upward trajectory, particularly in recent years.
Homeownership in Marion reached its peak in 2017 at 76%, but has since decreased to 58% in 2022. This downward trend in ownership coincided with a significant increase in average home prices. From 2016 to 2022, average home prices rose from $84,382 to $124,231, representing a 47% increase. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
The federal interest rate trends appear to have influenced homeownership rates in Marion. The period of low interest rates from 2010 to 2016 (ranging from 0.09% to 0.40%) corresponded with an increase in homeownership from 61% in 2013 to 73% in 2016. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined, dropping to 58% by 2022.
Renter percentages in Marion have shown an inverse relationship to homeownership rates, increasing from 24% in 2017 to 42% in 2022. Interestingly, average rent prices have fluctuated during this period. The average rent rose from $469 in 2017 to a peak of $864 in 2018, before declining to $773 in 2022. This volatility in rent prices, coupled with the city's decreasing population (from 3,609 in 2017 to 3,517 in 2022), suggests a complex rental market influenced by various economic factors.
In 2023 and 2024, Marion's housing market showed signs of cooling. Average home prices decreased from the 2022 peak of $124,231 to $119,036 in 2023 and further to $114,010 in 2024. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the softening of home prices by making mortgages more expensive and reducing buyer demand.
Looking ahead, predictive models suggest that Marion's housing market may continue to experience moderate changes. Average home prices are projected to stabilize or slightly decrease over the next five years, influenced by the current high interest rate environment. Rent prices are expected to show modest increases, potentially reaching an average of around $800-$850 per month by 2029, driven by the growing renter population and overall inflation trends.
In summary, Marion has experienced a shift from a predominantly homeowner market to one with a growing renter population. This change has been accompanied by significant increases in average home prices up to 2022, followed by a recent cooling trend. The interplay between federal interest rates, housing affordability, and demographic changes will likely continue to shape Marion's real estate landscape in the coming years.
