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Rising Home Values and High Ownership Rates in Zip Code 35552: A Rural Alabama Case Study
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
Detroit, located in zip code 35552 in Alabama, presents an interesting case study in homeownership and housing market trends. This rural community has experienced significant fluctuations in population and housing dynamics over the past decade, with homeownership rates generally remaining high despite economic changes. The homeownership rate in Detroit has shown remarkable resilience, maintaining a high percentage throughout the years. In 2013, the homeownership rate stood at an impressive 91%. Although there were some fluctuations, by 2022, it remained strong at 88%. This consistently high rate of homeownership suggests a deeply rooted preference for property ownership in this community. Average home prices in the area have shown a steady upward trend. From 2017 to 2022, average home prices increased from $87,932 to $135,578, representing a substantial 54% increase over five years.
Federal interest rates have played a significant role in shaping homeownership trends in Detroit. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This favorable financing environment likely contributed to the high homeownership rates observed during this time. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we see a slight dip in homeownership from 91% in 2013 to 88% in 2022, though the rate remained remarkably high overall.
Renter percentages in Detroit have remained relatively low, fluctuating between 9% and 24% from 2013 to 2022. Interestingly, average rent prices have shown a significant upward trend during this period. In 2013, the average rent was $284, which increased to $515 by 2022, representing an 81% increase. This substantial rise in rent prices occurred despite the population decreasing from 829 in 2013 to 788 in 2022, suggesting factors beyond population growth were driving rent increases.
In 2023 and 2024, we observe some intriguing developments in the housing market. The average home price in Detroit reached $139,282 in 2023, marking the highest point in the available data. However, in 2024, there was a slight decrease to $133,099. This coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the slight cooling in home prices observed in 2024.
Looking ahead, predictive models suggest that average home prices in Detroit may experience moderate growth over the next five years, potentially reaching around $150,000 by 2029. However, this growth may be tempered by the current high interest rate environment. Average rent prices are projected to continue their upward trend, potentially surpassing $600 by 2029, assuming current economic conditions persist.
In summary, Detroit in zip code 35552 demonstrates a strong culture of homeownership, with rates consistently above 80% despite fluctuations in population and economic conditions. The community has experienced significant increases in both average home prices and rent prices over the past decade. While recent high interest rates may slow home price growth, the overall trend suggests a resilient and potentially growing housing market in this rural Alabama town.
