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Oakman, Alabama: A Decade of Housing Market Shifts and Interest Rate Impacts
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
Oakman, located in Alabama, is a small community with a population of 3,430 as of 2022. The city has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions.
From 2013 to 2022, Oakman saw a slight decline in homeownership rates, dropping from 86% to 82%. During this period, average home prices experienced overall growth, rising from $106,035 in 2013 to $153,800 in 2022, representing a 45% increase. This trend suggests that while home values appreciated, it may have become more challenging for some residents to enter the housing market.
The relationship between federal interest rates and homeownership rates in Oakman shows some correlation. As interest rates remained low from 2013 to 2016, hovering around 0.1% to 0.4%, homeownership rates remained relatively stable, ranging from 83% to 86%. However, as interest rates began to rise in 2017, reaching 1.83% by 2018, homeownership rates dipped to 78% in 2018 and 2019. This shift suggests that higher interest rates may have impacted affordability and homebuying decisions for some residents.
The rental market in Oakman has shown interesting trends. The percentage of renters increased from 14% in 2013 to 18% in 2022. Average rent prices fluctuated during this period, starting at $353 in 2013, peaking at $429 in 2019, and then settling at $448 in 2022. This represents a 27% increase in average rent over the decade. The rise in both renter percentage and rent prices may indicate growing demand for rental properties in the area, possibly due to factors such as population growth or changing housing preferences.
In 2023 and 2024, Oakman experienced a shift in the housing market. Average home prices declined from the 2022 peak of $153,800 to $143,848 in 2023 and further to $138,425 in 2024. This represents a 10% decrease over two years. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market and the decrease in average home prices.
Looking ahead, based on recent trends and current market conditions, we can project potential scenarios for the next five years. Average home prices may stabilize or show modest growth as the market adjusts to higher interest rates. We might expect prices to range between $140,000 and $160,000 by 2029. For average rent prices, if the trend of increasing rental demand continues, we could see them rise to around $500-$550 per month by 2029, assuming steady economic growth and continued population stability in Oakman.
In summary, Oakman has experienced a gradual shift towards more renters over the past decade, with both home prices and rent prices generally trending upward until recent years. The significant rise in interest rates in 2023 and 2024 has coincided with a cooling in the housing market, leading to a decrease in average home prices. These trends highlight the dynamic nature of the local real estate market and its sensitivity to broader economic factors.
