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Rising Home Values and High Ownership Rates in Zip Code 36879: Auburn's Resilient Housing Market
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 36879, located in Auburn, Alabama, has experienced significant demographic and housing market changes over the past decade. This area has seen a notable increase in population and homeownership rates, coupled with fluctuating average home prices and rent costs.
The homeownership rate in zip code 36879 has shown a strong upward trend, increasing from 82% in 2013 to 89% in 2022. This rise in homeownership coincides with a substantial increase in average home prices, which grew from $223,091 in 2013 to $404,316 in 2022, representing an 81% increase over nine years. The trend suggests a strong correlation between rising home values and increased homeownership in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership in the zip code increased from 82% to 88%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, despite rising interest rates in recent years (1.68% in 2022), homeownership in the area has remained high, suggesting other factors are also influencing the local housing market.
Renter percentages in zip code 36879 have decreased from 18% in 2013 to 11% in 2022, inversely mirroring the rise in homeownership. Interestingly, average rent prices have shown volatility during this period. They peaked at $1,093 in 2019 before declining to $927 in 2022. This fluctuation in rent prices, combined with the area's population growth from 2,835 in 2013 to 4,769 in 2022, suggests a complex rental market influenced by factors such as new housing development and changing local economic conditions.
In 2023, the average home price in zip code 36879 reached $418,024, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $438,627, while interest rates have slightly risen to 5.33%. This continued upward trajectory in both home prices and interest rates indicates a robust housing market in the area, despite higher borrowing costs.
Looking ahead, predictive models suggest that the strong housing market in zip code 36879 is likely to continue. Over the next five years, average home prices are projected to increase by approximately 20-25%, potentially reaching around $548,000 by 2029. Average rent prices, which have been more volatile, are expected to stabilize and show moderate growth of about 10-15% over the same period, potentially reaching around $1,065 per month.
In summary, zip code 36879 has demonstrated a remarkable trend of increasing homeownership and rising home values over the past decade. Despite fluctuations in the rental market and rising interest rates, the area has maintained a strong preference for homeownership. The continued growth in population and home prices, even in the face of higher interest rates, suggests a resilient and attractive housing market in this Auburn neighborhood.
