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Oak Ridge Park: A Decade of Resilient Home Values and Ownership Trends
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
Oak Ridge Park, a neighborhood in Birmingham, Alabama, has experienced significant changes in home values and ownership over the past decade. This area has seen a general trend of increasing average home prices, while homeownership rates have remained relatively stable with minor fluctuations. The interplay between these factors provides insight into the neighborhood's housing market dynamics.
From 2013 to 2022, homeownership rates in Oak Ridge Park fluctuated between 39% and 47%. The lowest point was recorded in 2017 at 39%, while the highest rates of 47% were observed in both 2014 and 2022. Despite these fluctuations, the overall trend shows a slight increase in homeownership over this period. Concurrently, average home prices in the neighborhood have shown a significant upward trend. In 2013, the average home price was $40,853, which increased to $123,867 by 2022, representing a substantial 203% increase over nine years.
The relationship between federal interest rates and homeownership rates in Oak Ridge Park shows some correlation. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates in the neighborhood increased from 45% to 47%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in Oak Ridge Park have shown an inverse relationship to homeownership rates. The highest percentage of renters was observed in 2017 at 61%, corresponding to the lowest homeownership rate that year. Average rent prices have fluctuated over the years, with a general upward trend. In 2013, the average rent was $942, which decreased to $735 in 2015 before rising again to $1,040 in 2021, and then dropping to $807 in 2022. These fluctuations in rent prices may be influenced by various factors, including changes in the local economy and housing market conditions.
Looking at the most recent data, the average home price in Oak Ridge Park for 2023 was $122,509, showing a slight decrease from 2022. In 2024, the average home price further decreased to $113,641. This recent downward trend 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 the cooling of home prices in the neighborhood.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Oak Ridge Park to potentially stabilize or show modest growth, assuming interest rates remain elevated. The recent decrease in home prices may attract more buyers, potentially leading to a gradual increase in homeownership rates. Average rent prices are likely to continue their upward trajectory, albeit at a more moderate pace, as the rental market adjusts to changes in homeownership trends and overall housing affordability.
In summary, Oak Ridge Park has experienced significant growth in average home prices over the past decade, with homeownership rates remaining relatively stable. The neighborhood has shown resilience in maintaining a balance between owners and renters, even as housing prices have increased substantially. Recent data indicates a cooling in the housing market, likely influenced by rising interest rates. Moving forward, the interplay between interest rates, housing affordability, and demographic shifts will continue to shape the ownership and rental landscape in Oak Ridge Park.
