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Rising Home Values and Ownership in Zip Code 35503: Jasper'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 35503, located in Jasper, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing homeownership and fluctuating average home and rent prices, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 35503 has shown a steady increase from 2013 to 2022. In 2013, the homeownership rate was 75%, which gradually rose to 81% by 2022. This upward trend coincided with a significant increase in average home prices. The average home price in 2013 was $133,339, which steadily climbed to $205,045 by 2022, representing a substantial 53.8% increase over this period. This parallel growth suggests a strong correlation between rising home values and increasing homeownership rates in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 35503. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates increased from 75% to 74%, likely due to more affordable financing options. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership continued to increase, reaching 80% in 2019. This trend suggests that other local factors, such as job market stability or housing supply, may have outweighed the impact of rising interest rates on homeownership decisions in this zip code.
The rental market in zip code 35503 has shown inverse trends to homeownership. As homeownership rates increased, the percentage of renters decreased from 25% in 2013 to 19% in 2022. Interestingly, average rent prices have fluctuated over this period. The average rent was $666 in 2013, peaked at $828 in 2015, and then decreased to $712 by 2022. This fluctuation in rent prices, coupled with the decreasing renter population, suggests a complex interplay of factors affecting the rental market, possibly including changes in housing supply, local economic conditions, and shifting demographics.
In 2023 and 2024, the average home prices in zip code 35503 continued to rise, albeit at a slower pace. The average home price reached $205,965 in 2023 and $207,982 in 2024, showing a modest increase of 1.4% over two years. This slowing growth rate coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the deceleration in home price appreciation.
Looking ahead, predictive models suggest that average home prices in zip code 35503 may continue to increase over the next five years, but at a more moderate pace compared to the rapid growth seen in the early 2020s. Average rent prices are expected to stabilize or increase slightly, reflecting the area's evolving housing market dynamics and potential economic factors.
In summary, zip code 35503 has demonstrated a strong trend towards increased homeownership, with average home prices rising significantly over the past decade. The rental market has contracted in terms of occupancy but has shown variability in pricing. Recent data indicates a slowing of home price growth, likely influenced by rising interest rates. These trends reflect a changing real estate landscape in Jasper, Alabama, with implications for both current and future residents.
