Loading Content...
Rising Home Values and Ownership in Zip Code 35054: Pell City's Resilient Real Estate Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 35054, located in Pell City, Alabama, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a general trend towards increased homeownership and rising average home prices, with some fluctuations in average rent prices.
The ownership percentage in zip code 35054 has shown a notable upward trend, particularly in recent years. In 2013, the homeownership rate was 84%, which decreased to 71% in 2015 and 2016. However, there has been a steady increase since then, reaching 89% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. The average home price in 2013 was $219,353, which rose to $393,637 by 2022, representing a 79.4% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates stabilized around 71-72%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates in the zip code actually increased, reaching 89% in 2022. This suggests that other local factors may have had a stronger influence on homeownership than interest rates alone in this area.
Renter percentages in zip code 35054 have generally decreased as homeownership rates have increased. The renter percentage peaked at 29% in 2015 and 2016, coinciding with the lowest homeownership rates. Since then, the renter percentage has declined, reaching 11% in 2022. Average rent prices have shown some volatility, with a general upward trend from 2013 to 2018, peaking at $1,024 in 2018. However, there has been a decline in average rent prices since then, dropping to $783 in 2022. This decrease in rent prices, coupled with the declining renter percentage, suggests a shift towards homeownership in the area.
In 2023 and 2024, the average home prices in zip code 35054 have shown a slight fluctuation. The average home price in 2023 was $393,155, a minor decrease from 2022. However, in 2024, the average home price increased to $401,514, indicating a resumption of the upward trend. It's worth noting that federal interest rates have significantly increased during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these high interest rates, the housing market in this zip code appears to remain robust.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in zip code 35054 will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices may stabilize or see modest increases as the rental market adjusts to the strong preference for homeownership in the area.
In summary, zip code 35054 has experienced a significant shift towards homeownership, with rates rising from 71% in 2015 to 89% in 2022. This trend has been accompanied by substantial increases in average home prices, which have nearly doubled over the past decade. Despite recent increases in interest rates, the local housing market remains strong, with average home prices continuing to rise. The rental market has seen a decline in both the percentage of renters and average rent prices, reflecting the area's strong preference for homeownership.
