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Rising Home Values and Ownership in Hannon Park: A Decade of Real Estate Trends
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
Hannon Park, located in Mobile, Alabama, has experienced significant changes in its real estate market over the past decade. This analysis examines the relationships between homeownership rates, average home prices, and average rent prices in the area, revealing important trends and potential future developments.
The homeownership rate in Hannon Park has shown an overall increasing trend, rising from 61% in 2013 to 73% in 2022. This growth in homeownership has occurred alongside a steady increase in average home prices, which grew from $149,790 in 2013 to $240,937 in 2022, representing a substantial 60.8% increase over the period. The most notable surge occurred between 2020 and 2022, with average home prices increasing by 22.8% from $196,157 to $240,937.
Federal interest rates have played a significant role in shaping homeownership trends in Hannon Park. From 2013 to 2015, historically low interest rates of around 0.1% likely contributed to the initial increase in homeownership from 61% to 64%. As interest rates gradually rose from 2016 onwards, reaching 2.16% by 2019, the homeownership rate remained relatively stable around 64-65%. Interestingly, despite a sharp drop in interest rates to 0.08% in 2021, homeownership continued to climb, reaching 66% that year and 73% by 2022, suggesting other factors were also influencing this trend.
The rental market in Hannon Park has experienced its own set of changes. The percentage of renters decreased from 39% in 2013 to 26% in 2022, inversely mirroring the rise in homeownership. Despite this decline in the renter population, average rent prices have shown a consistent upward trend. In 2013, the average rent was $752, which increased to $1,074 by 2022, representing a significant 42.8% rise. This trend suggests a growing demand for rental properties, possibly due to factors such as an influx of temporary residents or a shortage of available rental units.
Examining the most recent data, the average home price in Hannon Park reached $244,763 in 2023 and further increased to $250,635 in 2024. This continued appreciation occurs against the backdrop of rising interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. Despite these higher rates, the persistent increase in home prices indicates strong demand and confidence in the local real estate market.
Applying predictive models to forecast the next five years, it is anticipated that average home prices in Hannon Park will continue their upward trajectory, albeit at a potentially slower pace due to the higher interest rate environment. Projections suggest average home prices could reach around $275,000 to $290,000 by 2029. For average rent prices, the forecast indicates a continued increase, potentially reaching $1,300 to $1,400 per month by 2029, assuming current trends in population and housing supply remain consistent.
In conclusion, Hannon Park has demonstrated a robust real estate market characterized by increasing homeownership rates and rising property values. The neighborhood has shown resilience in the face of fluctuating interest rates, with both the ownership and rental sectors experiencing significant price appreciation. As we look to the future, Hannon Park appears positioned for continued growth, making it an area of interest for both homeowners and investors alike.
