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Neely Neighborhood: Rising Home Values and Shifting Ownership Patterns
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
The Neely neighborhood in Mobile, Alabama, has experienced significant changes in homeownership and housing prices over the past decade. This area has seen notable shifts in the balance between owner-occupied and renter-occupied housing units, along with substantial increases in both average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
The relationship between homeownership rates and average home prices in Neely reveals an interesting pattern. In 2013, the homeownership rate was 64%, with no available data on average home prices. By 2014, when average home price data became available at $24,737, the homeownership rate had decreased to 58%. Despite a slight increase in average home prices to $24,143 in 2015, homeownership rebounded to 60%. The trend continued with homeownership peaking at 65% in 2016 when average home prices rose to $26,215. However, as average home prices continued to climb, reaching $36,939 in 2022, homeownership rates showed a general decline, settling at 55% in that year.
Federal interest rates have played a role in homeownership trends in Neely. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, fluctuating between 58% and 65%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a gradual decline, dropping to 55% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population and average rent prices in Neely have shown a correlation over the years. In 2013, with 36% of the population renting, the average rent was $640. As the renter percentage increased to 42% in 2014, average rent slightly decreased to $632. However, a general upward trend followed, with both renter percentages and average rent prices increasing. By 2019, the renter percentage reached 42% again, with average rent rising significantly to $995. The trend continued, and by 2022, 45% of the population were renters, with average rent reaching $1,050.
In 2023 and 2024, Neely has seen further increases in average home prices. The average home price in 2023 was $38,510, representing a 4.3% increase from 2022. In 2024, the average home price has risen to $41,564, a 7.9% increase from the previous year. Concurrently, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homeownership rates and housing affordability in the coming years.
Looking ahead, predictive models suggest that average home prices in Neely are likely to continue their upward trajectory over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and overall housing market trends. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, the Neely neighborhood has experienced a gradual shift towards a higher percentage of renters, coinciding with substantial increases in both average home prices and average rent prices. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with recent sharp increases in interest rates potentially influencing future housing market dynamics. As the neighborhood continues to evolve, these trends will likely shape its demographic and economic landscape in the coming years.
