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Rising Home Values and Declining Ownership in Helen Keller's Birthplace: Tuscumbia's Housing Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Tuscumbia, Alabama, located in the northwest part of the state, is a city rich in history and culture. Known as the birthplace of Helen Keller, this charming city has experienced notable shifts in its housing market over the past decade. The trends in homeownership, average home prices, and average rent prices reveal an evolving landscape for Tuscumbia's residents.
The homeownership rate in Tuscumbia has shown a gradual decline over the years. In 2013, 71% of residents owned their homes, but by 2022, this figure had decreased to 63%. This shift coincides with a significant increase in average home prices. In 2015, the average home price in Tuscumbia was $111,961. By 2022, it had risen to $172,812, representing a substantial 54.3% increase over seven years.
The relationship between federal interest rates and homeownership rates in Tuscumbia follows a general trend seen nationwide. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable, hovering around 70%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined to 63%. This suggests that higher interest rates may have made home purchases less affordable for some Tuscumbia residents.
The rental market in Tuscumbia has shown interesting trends as well. The percentage of renters increased from 28% in 2013 to 37% in 2022. Despite this increase in demand, average rent prices have fluctuated. In 2013, the average rent was $705, which decreased to $621 by 2022, a 11.9% reduction. This unexpected trend might be attributed to factors such as increased housing supply or local economic conditions.
Looking at the most recent data, the average home price in Tuscumbia continued to rise, reaching $177,412 in 2023 and $185,702 in 2024. This represents a 7.5% increase from 2022 to 2024. Simultaneously, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the growth in home prices and affect affordability for potential buyers.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Tuscumbia will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $220,000 to $230,000. For rent prices, the trend is less clear due to recent fluctuations. However, if the population continues to grow and demand for rentals remains strong, we might see a gradual increase in average rent prices, potentially reaching $700 to $750 by 2029.
In summary, Tuscumbia's housing market has shown a clear trend towards increasing home values and a shift from homeownership to renting. The rise in federal interest rates has likely influenced this trend, making homeownership more challenging for some residents. Despite these changes, Tuscumbia remains an attractive city with a dynamic housing market, balancing its rich historical heritage with evolving residential needs.
