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Rising Home Values and Ownership in Melrose, Mobile: A Decade of Housing Dynamics
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
Melrose, a small neighborhood in Mobile, Alabama, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in population and notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Melrose has shown a general upward trend, particularly in recent years. In 2013, the homeownership rate was 59%, which increased to 71% by 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in Melrose was $96,665, which rose steadily to reach $179,069 by 2022, representing an impressive 85% increase over this period.
The relationship between federal interest rates and homeownership rates in Melrose appears to follow established trends. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates fluctuated but generally remained above 55%. The sharp increase in homeownership from 56% in 2019 to 64% in 2020 coincided with a significant drop in interest rates from 2.16% to 0.38%, likely making home purchases more attractive to potential buyers.
Renter percentages in Melrose have generally decreased as homeownership rates increased. In 2013, 40% of residents were renters, which decreased to 29% by 2022. Average rent prices, however, have shown an upward trend. In 2013, the average rent was $958, which increased to $1,135 by 2022, a 18.5% increase. This rise in rent prices occurred despite fluctuations in the neighborhood's population, which ranged from a low of 229 in 2019 to a high of 289 in 2014.
Looking at the most recent data, the average home price in Melrose reached $187,096 in 2023 and further increased to $190,595 in 2024. This represents a continued upward trend in home values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and market dynamics.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Melrose will continue to rise, potentially reaching around $220,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, a more moderate increase is expected, potentially reaching approximately $1,300 by 2029, assuming the trend of the past few years continues.
In summary, Melrose has experienced a notable increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the percentage of renters. Despite this, average rent prices have also risen. The neighborhood's housing market has shown resilience and growth, with recent data indicating continued appreciation in home values. These trends suggest a growing preference for homeownership in Melrose, potentially driven by historically low interest rates in the mid-2010s and early 2020s, though recent interest rate increases may influence future market dynamics.
