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Rising Home Values and Ownership in Zip Code 35771: Section, Alabama's Rural Housing Market Defies Interest Rates
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 35771, located in Section, Alabama, presents an intriguing case study of housing trends over the past decade. This rural area has experienced significant shifts in homeownership rates and property values, reflecting broader economic changes in the region.
The homeownership rate in zip code 35771 has shown a notable increase from 74% in 2013 to 81% in 2022. This upward trend in homeownership has coincided with a substantial rise in average home prices. In 2013, the average home price was $89,032, which steadily climbed to $173,750 by 2022, representing a remarkable 95% increase over this period. This strong correlation between rising homeownership rates and increasing home values suggests a growing demand for property ownership in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 35771. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.11% to 0.38%. These low rates likely contributed to the increased homeownership, as they made mortgages more affordable for potential buyers. The sharp rise in homeownership from 76% in 2020 to 81% in 2022, despite rising interest rates (1.68% in 2022), indicates a strong desire for property ownership in this community.
As homeownership increased, the percentage of renters in zip code 35771 decreased from 26% in 2013 to 20% in 2022. Interestingly, despite this decline in the renter population, average rent prices have shown an upward trend. The average rent rose from $531 in 2013 to $755 in 2022, a 42% increase. This rise in rent prices, even with a shrinking renter pool, suggests a tightening rental market, possibly due to limited rental inventory as more properties transition to owner-occupied status.
In 2023 and 2024, the housing market in zip code 35771 continued its upward trajectory. The average home price reached $185,146 in 2023 and further increased to $186,999 in 2024. This represents a 7.6% increase from 2022 to 2024, indicating sustained growth in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and property demand.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue over the next five years, albeit at a potentially slower pace. Home prices are projected to increase by approximately 3-5% annually, potentially reaching around $220,000 by 2029. Rent prices are expected to follow a similar trajectory, with estimated annual increases of 2-4%, potentially reaching an average of $850-$900 per month by 2029.
In summary, zip code 35771 has experienced a significant shift towards homeownership, accompanied by substantial increases in both home values and rent prices. The area has demonstrated resilience in its housing market, with property values continuing to rise even in the face of increasing interest rates. These trends suggest a robust local housing market with sustained demand for both owned and rented properties, likely driven by the area's economic stability and desirability as a residential location.
