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Park Place, Mobile: A Decade of Rising Home Values and Ownership Rates
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
Park Place, a neighborhood in Mobile, Alabama, has experienced significant changes in homeownership rates and housing prices over the past decade. These changes reflect broader economic trends and local market dynamics.
From 2013 to 2022, Park Place witnessed fluctuations in homeownership rates. The neighborhood started with a 62% homeownership rate in 2013, which remained stable through 2014. However, a gradual decline followed, reaching 56% by 2020. A significant increase then occurred, with homeownership rising to 67% in 2022. This upward shift coincided with changes in average home prices. The average home price in Park Place increased from $123,342 in 2013 to $189,631 in 2022, representing a 53.7% increase over this period.
The relationship between federal interest rates and homeownership rates in Park Place shows some correlation. Between 2013 and 2021, interest rates remained low, ranging from 0.08% to 1.83%, while homeownership rates experienced some fluctuation but generally remained above 56%. The significant jump in homeownership to 67% in 2022 occurred despite a rise in federal interest rates to 1.68%, suggesting other local factors may have influenced this trend.
Rental trends in Park Place have shown an inverse relationship to homeownership rates. The percentage of renters increased from 38% in 2013 to a peak of 44% in 2020, before declining to 33% in 2022. Average rent prices fluctuated during this period, starting at $888 in 2013, peaking at $1,112 in 2016, and then decreasing to $897 in 2022. The population of Park Place declined from 3,370 in 2013 to 2,611 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, Park Place continued to see growth in average home prices. The average home price reached $197,218 in 2023 and further increased to $204,702 in 2024. This represents a 4.1% year-over-year increase from 2022 to 2023 and a 3.8% increase from 2023 to 2024. Federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends.
Looking ahead, based on the observed trends, we can anticipate continued growth in average home prices in Park Place over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices may stabilize or see modest increases as the rental market adjusts to changes in homeownership rates and overall population trends.
In summary, Park Place has experienced a notable increase in homeownership rates and average home prices, particularly in recent years. The neighborhood has shown resilience in its housing market despite population declines and fluctuating rental trends. The interplay between federal interest rates, local economic conditions, and housing market dynamics will likely continue to shape Park Place's residential landscape in the coming years.
