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Rising Home Values and Ownership Trends in Beau Terra, Mobile's Resilient Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Beau Terra, a vibrant neighborhood in Mobile, Alabama, has experienced significant changes in its housing market over the past decade. This analysis focuses on the trends in homeownership rates, average home prices, and rent prices from 2013 to 2024, with projections extending to 2029. The neighborhood has shown resilience and growth, with a general trend of increasing home values and stabilizing ownership rates. Homeownership rates in Beau Terra have fluctuated over the years, showing an overall trend towards stability. In 2013, the rate stood at 72%, but decreased to 60% by 2016. From 2017 onwards, there has been a gradual increase in homeownership, reaching 69% in 2022. This trend in homeownership has coincided with a steady rise in average home prices. The average home price in Beau Terra was $70,408 in 2013 and increased significantly to $126,817 in 2022, representing an impressive 80% increase over this period.
The relationship between federal interest rates and homeownership rates in Beau Terra shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates initially declined. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized and then increased slightly. This trend continued into 2022, with homeownership reaching 69% despite a federal interest rate of 1.68%. This suggests that while interest rates play a role, other local factors also significantly influence homeownership decisions in Beau Terra.
Renter percentages in Beau Terra have shown an inverse relationship to homeownership rates, as expected. The renter population peaked at 40% in 2016, coinciding with the lowest homeownership rate. Since then, the renter percentage has gradually decreased to 31% in 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $915, which increased to $929 in 2016. However, there was a significant drop to $687 in 2021, before rising again to $765 in 2022. This fluctuation in rent prices may be influenced by changes in housing supply and demand, as well as broader economic factors affecting the Mobile area.
As of 2024, the average home price in Beau Terra has reached $138,368, showing continued growth from previous years. This represents a 5.3% increase from the 2023 average price of $131,346. The federal interest rate for 2024 stands at 5.33%, which is slightly higher than the 2023 rate of 5.02%. Despite these higher interest rates, the housing market in Beau Terra appears to remain robust, with home prices continuing to appreciate.
Looking ahead, predictive models suggest that the upward trend in average home prices is likely to continue over the next five years, albeit potentially at a more moderate pace. Average home prices could potentially reach around $155,000 to $165,000 by 2029, assuming current economic conditions persist. Rent prices may also see a gradual increase, potentially reaching an average of $800 to $850 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Beau Terra has demonstrated resilience in its housing market, with a trend towards increasing homeownership and rising average home prices over the past decade. The neighborhood has navigated through periods of fluctuating rent prices and changing federal interest rates while maintaining a relatively stable housing market. The continued rise in home prices, even in the face of higher interest rates, suggests a strong demand for housing in this Mobile neighborhood. As Beau Terra moves forward, it appears poised for continued growth and development in its residential real estate sector.
