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Pleasant Grove's Rising Home Values and Declining Ownership: A Decade of Housing Market Shifts
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
Pleasant Grove, Alabama, is a small city located in Jefferson County. With a population of 10,483 in 2022 and a land area of 9.82 square miles, it offers a suburban feel while maintaining proximity to Birmingham. Over the past decade, Pleasant Grove has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Pleasant Grove has shown a gradual decline from 2013 to 2022. In 2013, 89% of residents were homeowners, but by 2022, this figure had decreased to 78%. Conversely, the percentage of renters increased from 10% to 22% during the same period. This trend coincides with a significant rise in average home prices. In 2013, the average home price was $126,725, which steadily increased to $226,015 by 2022, representing a 78% increase over nine years.
The relationship between federal interest rates and homeownership rates in Pleasant Grove aligns with typical patterns. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 87-89%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline more rapidly, dropping from 87% in 2017 to 78% in 2022.
Renter percentages and average rent prices in Pleasant Grove have shown an interesting correlation. As the renter population grew from 10% in 2013 to 22% in 2022, average rent prices also increased substantially. In 2013, the average rent was $1,000, which rose to $1,196 by 2022, a 19.6% increase. This trend suggests that the growing demand for rental properties has likely contributed to the rise in rent prices.
Looking at the most recent data, the average home price in Pleasant Grove reached $232,802 in 2023, showing continued growth. However, in 2024, there was a slight decrease to $231,928, potentially indicating a stabilization in the housing market. Concurrently, federal interest rates have risen significantly, reaching 5.33% in 2024, which may impact future homeownership trends and housing affordability.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Pleasant Grove will continue to rise, albeit at a slower pace than in recent years. By 2029, average home prices could reach approximately $260,000 to $275,000. Average rent prices are also expected to increase, potentially reaching $1,400 to $1,500 per month by 2029. These projections assume a gradual economic growth and stable local market conditions.
In summary, Pleasant Grove has experienced a shift towards more renters and higher housing costs over the past decade. The decline in homeownership rates, coupled with rising home prices and rents, reflects broader economic trends and changing demographics. The recent stabilization in home prices and high interest rates may signal a new phase in the local housing market, potentially affecting future homeownership rates and housing affordability in the coming years.
