Loading Content...
Rising Home Values and Declining Ownership: Rothfield's Unique 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
Rothfield, a neighborhood in Mobile, Alabama, has experienced significant changes in its housing market and demographics over the past decade. This area has seen notable shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics. The homeownership rate in Rothfield has shown a general decline from 2013 to 2022. In 2013, 83% of residents were homeowners, but by 2022, this figure had dropped to 66%. This decline coincided with a substantial increase in average home prices. In 2013, the average home price was $93,925, which steadily rose to $173,666 by 2022, representing an 85% increase over nine years. The relationship between federal interest rates and homeownership rates in Rothfield follows a well-established trend. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates stayed relatively high, between 78% and 83%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined, dropping to 66% by 2022. This trend aligns with the general principle that lower interest rates encourage homeownership due to more affordable financing options.
The renter population in Rothfield has grown as homeownership declined. In 2013, only 17% of residents were renters, but this increased to 34% by 2022. Average rent prices have also risen, albeit less dramatically than home prices. In 2013, the average rent was $1,103, which increased to $1,095 by 2022, showing only a marginal change over the period. The population fluctuated during this time, reaching a low of 1,801 in 2014 and a high of 2,324 in 2021, before settling at 1,977 in 2022.
In 2023 and 2024, the housing market in Rothfield continued its upward trajectory. The average home price reached $185,029 in 2023 and further increased to $190,502 in 2024. This represents a 9.7% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Rothfield may continue to rise over the next five years, potentially reaching around $220,000 by 2029 if current trends persist. Rent prices are also expected to increase, albeit at a slower rate, potentially reaching an average of $1,200 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, Rothfield has experienced a significant shift from a predominantly homeowner community to one with a growing renter population. This change has occurred alongside substantial increases in average home prices and more modest growth in rent prices. The interplay between federal interest rates, housing affordability, and demographic shifts continues to shape the neighborhood's housing market dynamics.
