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Rising Home Values and Ownership in Garland, Mobile: A Decade of Housing Market Transformation
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
Garland, a neighborhood in Mobile, Alabama, has undergone significant changes in homeownership and housing prices over the past decade. The area has experienced a notable increase in owner-occupied housing units, accompanied by fluctuations in average home prices and rent costs.
The homeownership rate in Garland has shown a remarkable upward trend, rising from 80% in 2013 to 95% in 2022. This substantial increase in ownership coincided with a steady rise in average home prices. In 2013, the average home price was $143,041, which grew to $230,006 by 2022, representing a 60.8% increase over this period. The most significant annual jump occurred between 2020 and 2021, when average home prices surged from $182,686 to $203,332, an 11.3% increase in a single year.
The relationship between federal interest rates and homeownership rates in Garland appears to follow the general trend of lower interest rates encouraging higher homeownership. For instance, as interest rates remained below 0.5% from 2014 to 2016, the homeownership rate increased from 82% to 83%. The trend continued as interest rates gradually rose, with homeownership reaching 95% by 2018 and maintaining that level through 2022, despite fluctuations in interest rates.
The percentage of renters in Garland has decreased significantly, from 20% in 2013 to just 5% in 2022. Despite this decline in renters, average rent prices have shown considerable volatility. In 2013, the average rent was $1,179, which increased to $1,212 in 2014 before declining to $1,001 in 2017. However, there was a sharp increase to $1,706 in 2018, and rent prices have remained relatively stable since then, with the average rent in 2022 being $1,708. This trend suggests that while fewer units are being rented, those that are available command higher prices, possibly due to limited supply or improved quality of rental properties.
In 2023 and 2024, the housing market in Garland continued to evolve. The average home price reached $240,267 in 2023 and further increased to $246,891 in 2024, representing a 4.5% and 2.8% year-over-year growth respectively. These increases occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, predictive models suggest that average home prices in Garland may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are expected to remain stable or see modest increases, influenced by the limited rental market in the area. However, economic factors and local market conditions could significantly impact these predictions.
In summary, Garland has transformed into a predominantly owner-occupied neighborhood with steadily increasing home values. The area has seen a significant decrease in renters, yet paradoxically, an increase in average rent prices. The resilience of home prices in the face of rising interest rates suggests a strong demand for housing in this Mobile neighborhood. These trends paint a picture of a desirable area with a stable, homeowner-centric community that continues to attract investment and maintain its value.
