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Rising Home Values and Fluctuating Ownership in Di Grado, Mobile: A Decade of Real Estate Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Di Grado, a neighborhood in Mobile, Alabama, has experienced notable changes in its housing market over the past decade. The area has seen a general trend of increasing average home prices, while homeownership rates have fluctuated. Interestingly, average rent prices have remained relatively stable throughout this period, creating a unique dynamic in the local real estate market.
The homeownership rate in Di Grado has shown volatility between 2013 and 2022. Starting at 91% in 2013, it decreased to 85% in 2016, then rose to a peak of 97% in 2019, before settling at 86% in 2022. Concurrent with these ownership changes, average home prices in the neighborhood have generally trended upward. In 2013, the average home price was $252,502, which steadily increased to $383,121 in 2022, representing a significant 51.7% increase over nine years. The lack of clear correlation between ownership rates and home prices suggests that other factors may be influencing these trends.
Federal interest rates have played a role in homeownership trends in Di Grado, although not always in expected ways. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates in the neighborhood slightly decreased from 91% to 85%. Conversely, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership actually increased, peaking at 97% in 2019. This pattern indicates that local factors may have had a stronger influence on homeownership than national interest rates during this period.
Renter percentages in Di Grado have mirrored the inverse of homeownership rates, ranging from a low of 3% in 2019 to a high of 17% in 2021. Despite these fluctuations, average rent prices remained constant at $1,349 from 2013 to 2020, increasing only slightly to $1,350 in 2021 and 2022. This stability in rent prices, despite changes in the renter population, could indicate a regulated rental market or prevalence of long-term lease agreements in the area.
In 2023, the average home price in Di Grado reached $392,449, a 2.4% increase from 2022. This growth continued into 2024, with average home prices rising to $395,686, a further 0.8% increase. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and future market dynamics.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in Di Grado may continue to appreciate, albeit at a slower rate due to higher interest rates. A conservative estimate might suggest an annual growth rate of 2-3%, potentially reaching around $450,000 by 2029. Rent prices, which have shown remarkable stability, may start to increase more noticeably, possibly reaching an average of $1,500-$1,600 per month by 2029, assuming a 2-3% annual increase.
In summary, Di Grado has experienced a general trend of increasing home values over the past decade, with fluctuating but overall high homeownership rates. The stability of rent prices amid changing renter percentages is a notable feature of this neighborhood. Recent increases in federal interest rates and continued home price appreciation suggest a potentially changing market dynamic in the coming years, which could affect both homeownership rates and rental demand in this Mobile neighborhood.
