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Rising Home Values and Ownership Rates in Zip Code 36863: Huguley'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 36863, located in Huguley, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, covering 76.57 square miles, has seen a general trend of increasing homeownership and fluctuating property values.
The ownership percentage in this zip code has shown a steady increase from 62% in 2013 to 72% in 2022. This rise in homeownership coincides with changes in average home prices. In 2013, the average home price was $62,795, which increased to $113,122 by 2022, representing an 80% increase over nine years. The most significant jump occurred between 2020 and 2021, with average home prices rising from $90,701 to $108,192, a 19.3% increase in just one year.
Federal interest rates have played a role in homeownership trends in zip code 36863. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership increased from 62% to 64%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership continued to climb, reaching 70% by 2019. This suggests that other local factors may have influenced homeownership rates more strongly than national interest rates in this particular area.
Renter percentages in zip code 36863 have decreased from 38% in 2013 to 28% in 2022, inversely mirroring the rise in homeownership. Interestingly, average rent prices have shown considerable volatility. In 2013, the average rent was $673, peaking at $881 in 2016 before declining to $676 in 2022. This fluctuation in rent prices doesn't show a clear correlation with the decreasing renter percentage, suggesting that local economic factors or housing supply changes may have influenced these trends more than rental demand.
Looking at more recent data, the average home price in zip code 36863 reached $114,975 in 2023, showing continued growth. However, in 2024, there was a slight decrease to $110,658. This recent dip coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the recent cooling in home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 36863 may continue to experience moderate growth, albeit at a slower pace than observed in recent years due to higher interest rates. The average rent prices are expected to stabilize or potentially increase slightly as the rental market adjusts to the changing homeownership landscape.
In summary, zip code 36863 has seen a clear trend of increasing homeownership over the past decade, accompanied by significant growth in average home prices. The rental market has shown more volatility, with decreasing renter percentages and fluctuating rent prices. Recent data indicates a potential cooling in the housing market, likely influenced by rising interest rates. These trends suggest a shifting housing landscape in this Alabama community, with a growing preference for homeownership despite economic challenges.
