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Oxmoor's Rising Home Values and Ownership Rates: A Decade of Housing Market Resilience
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Oxmoor, a neighborhood in Birmingham, Alabama, has experienced significant growth in homeownership and property values over the past decade. From 2013 to 2022, the area saw a 7 percentage point increase in homeownership, rising from 54% to 61%. This growth coincided with a substantial 68.5% increase in average home prices, from $183,207 in 2013 to $308,645 in 2022. The correlation suggests that appreciating home values motivated more residents to invest in homeownership, viewing it as a sound financial decision.
Federal interest rates played a crucial role in shaping Oxmoor's homeownership trends. Low interest rates between 2013 and 2016, ranging from 0.1% to 0.4%, contributed to an increase in homeownership from 54% to 58%. As interest rates rose more significantly from 2017 onwards, reaching 1.68% in 2022, the rate of increase in homeownership slowed but continued to climb, reaching 61% in 2022. This trend indicates that other factors, such as the neighborhood's desirability and economic conditions, may have offset the potential negative impact of rising interest rates on homeownership.
The rental market in Oxmoor has also shown interesting trends. The percentage of renters decreased from 45% in 2013 to 39% in 2022, while average rent increased by 34.4%, from $1,098 to $1,476. This inverse relationship between the percentage of renters and average rent prices suggests that as rents became more expensive, some residents may have transitioned to homeownership. Additionally, the growing population during this period likely increased overall housing demand, contributing to the rise in both home prices and rents.
In 2023 and 2024, Oxmoor continued to see growth in average home prices. The average home price reached $323,985 in 2023 and further increased to $329,008 in 2024, representing a 1.6% year-over-year increase. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these high interest rates, which typically discourage home buying, the continued increase in home prices suggests strong demand and resilience in the Oxmoor housing market.
Looking ahead, predictive models forecast continued growth in both average home prices and rents over the next five years. Average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $390,000 by 2029. Average rents are expected to rise at a similar rate, possibly reaching $1,750-$1,800 per month in the same timeframe. These projections assume continued population growth and economic stability in the region.
In summary, Oxmoor has demonstrated a robust housing market characterized by increasing homeownership rates, rising home values, and growing rental prices. The neighborhood has shown resilience in the face of fluctuating interest rates, with home prices continuing to appreciate even during periods of higher rates. The inverse relationship between rental percentages and homeownership, coupled with rising property values, suggests a trend towards long-term residency and investment in the community. As Oxmoor continues to grow, it is likely to remain an attractive area for both homeowners and renters, with a housing market that reflects its increasing desirability and economic vitality.
