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Moody, Alabama: Rising Home Values Amidst Stable Ownership in a Growing Suburb
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
Moody, Alabama, located in St. Clair County, is a growing city known for its suburban charm and proximity to Birmingham. Over the past decade, Moody has experienced significant changes in homeownership rates, average home prices, and average rent prices. The city has generally maintained a high rate of homeownership, while average home prices have shown a steady increase, and average rent prices have fluctuated over time.
From 2013 to 2022, Moody's homeownership rate remained relatively stable, ranging between 75% and 82%. The highest rate was recorded in 2016 and 2019 at 82%, while the lowest was in 2021 at 75%. During this period, average home prices in Moody showed a consistent upward trend. In 2013, the average home price was $143,945, which increased to $257,552 by 2022, representing a substantial growth of 78.9% over nine years. This trend suggests a strong correlation between rising home values and sustained high homeownership rates in the city.
The relationship between federal interest rates and homeownership rates in Moody aligns with well-established trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates in Moody increased from 78% to 82%. As interest rates began to rise more significantly from 2017 onwards, there was a slight decline in homeownership, dropping to 75% in 2021. This pattern demonstrates that lower interest rates generally encourage homeownership due to more affordable financing options.
Renter percentages in Moody have fluctuated inversely to homeownership rates, ranging from 17% to 25% between 2013 and 2022. Interestingly, average rent prices have not shown a consistent correlation with renter percentages. For instance, in 2013, when the renter percentage was 21%, the average rent was $998. By 2022, with a similar renter percentage of 23%, the average rent had decreased to $870. The highest average rent of $1,003 was recorded in 2017 when the renter percentage was 18%, suggesting that factors beyond supply and demand, such as local economic conditions and housing policies, may influence rent prices in Moody.
Looking at the most recent data, the average home price in Moody for 2023 was $261,558, showing a slight increase from 2022. However, in 2024, there was a minor decrease to $260,834. This recent plateau in home prices 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 may be contributing to a slowdown in home price appreciation.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Moody will continue to grow, but at a more moderate pace compared to the rapid increases seen in recent years. This moderation is likely due to the higher interest rate environment. Average rent prices are expected to stabilize and potentially increase slightly, reflecting the city's steady population growth and demand for rental properties.
In summary, Moody, Alabama, has maintained a strong homeownership base while experiencing significant appreciation in average home values over the past decade. The city's housing market has shown resilience, with homeownership rates remaining high despite fluctuations in interest rates and economic conditions. The rental market has been more variable, with rent prices not always aligning with renter percentages. As Moody continues to grow, balancing affordable housing options for both owners and renters will be crucial for maintaining the city's attractiveness to current and prospective residents.
