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Pisgah, Alabama: Small Town's Home Values Double Amid Strong Ownership Preference
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Pisgah, a small town in Alabama, has experienced notable shifts in its housing market over the past decade. The town has maintained a strong preference for homeownership, with ownership rates consistently above 75% throughout the observed period. This analysis will explore the trends in ownership rates, average home prices, and average rent prices in Pisgah.
The homeownership rate in Pisgah has shown resilience and even growth in recent years. From 2013 to 2022, the percentage of owner-occupied homes fluctuated but ultimately increased from 83% to 85%. This trend coincided with a substantial rise in average home prices. In 2013, the average home price in Pisgah was $93,148. By 2022, it had nearly doubled to $178,833, representing a 92% increase over this period.
Examining the relationship between federal interest rates and homeownership rates reveals an interesting pattern. Despite the federal interest rate rising from 0.11% in 2013 to 1.68% in 2022, Pisgah's homeownership rate increased from 83% to 85% during this time. This suggests that local factors, such as the town's economic conditions or housing supply, may have had a more significant influence on homeownership than national interest rates.
The rental market in Pisgah has shown some volatility. The percentage of renter-occupied homes fluctuated between 15% and 24% from 2013 to 2022. Average rent prices experienced significant changes during this period. In 2013, the average rent was $519, which decreased to $414 in 2019, before rising sharply to $704 in 2022. This represents a 35.6% increase in average rent from 2013 to 2022, despite some intervening decreases. The town's population growth from 2,422 in 2013 to 2,590 in 2022 may have contributed to the overall increase in rental demand and prices.
In 2023 and 2024, Pisgah's housing market continued its upward trajectory. The average home price reached $187,051 in 2023 and further increased to $190,809 in 2024, representing a 6.7% rise from 2022 to 2024. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, marking a significant increase from previous years.
Looking ahead, predictive models suggest that average home prices in Pisgah will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the overall appreciation of the local real estate market. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, Pisgah has demonstrated a strong and growing preference for homeownership, with average home prices nearly doubling from 2013 to 2022. The rental market, while smaller, has seen significant price increases, particularly in recent years. The town's housing market has shown resilience in the face of rising interest rates, suggesting strong local demand for housing. As Pisgah moves forward, balancing affordable housing options with the town's growth and development will be crucial for maintaining its community character and economic stability.
