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Rising Home Values and Declining Ownership: The Dynamics of Zip Code 36502 in Atmore, Alabama
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
Zip code 36502, located in Atmore, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, covering 332.98 square miles, has seen fluctuations in its population and housing market dynamics, reflecting broader economic trends and local factors.
The homeownership rate in zip code 36502 has shown a gradual decline from 2013 to 2022. In 2013, the area had a homeownership rate of 71%, which decreased to 63% by 2022. This 8 percentage point drop coincided with significant changes in average home prices. The average home price in 2013 was $87,147, which steadily increased to $145,742 by 2022, representing a 67.2% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in zip code 36502. The period from 2013 to 2015 saw historically low interest rates, ranging from 0.11% to 0.13%, which coincided with relatively stable homeownership rates around 69-71%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% by 2022, homeownership rates declined. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 36502 has increased as homeownership rates declined. The percentage of renters rose from 29% in 2013 to 37% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $607, which fluctuated over the years, reaching a peak of $692 in 2017 before declining to $567 in 2022. This volatility in rent prices, coupled with the increasing renter population, suggests a complex rental market influenced by factors such as local economic conditions and housing supply.
Looking at the most recent data, the average home price in zip code 36502 continued to rise, reaching $151,798 in 2023 and $155,521 in 2024. This represents a 6.7% 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 impact future homeownership rates and housing market dynamics in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 36502 will continue to rise, albeit at a more moderate pace. The rate of increase may slow down due to the higher interest rates, potentially reaching around $170,000 to $180,000 by 2029. Average rent prices are expected to stabilize and potentially show a slight upward trend, possibly reaching $600 to $650 by 2029, assuming economic conditions remain relatively stable.
In summary, zip code 36502 has experienced a decline in homeownership rates coupled with a significant increase in average home prices over the past decade. The rental market has grown, with fluctuating rent prices. Recent years have seen continued growth in home values alongside rising interest rates. These trends reflect a changing housing landscape in Atmore, with affordability becoming a key factor in homeownership decisions.
