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Rising Home Values and Shifting Ownership in Crestview, Mobile: A Decade of Change
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Crestview, a neighborhood in Mobile, Alabama, has undergone significant changes in its housing market and demographic composition over the past decade. This analysis examines the interplay between homeownership rates, average home prices, and average rent prices in the area.
The homeownership rate in Crestview has declined notably since 2013. In 2013, 82% of residents owned their homes, but by 2022, this figure had dropped to 48%. Simultaneously, average home prices in the neighborhood have shown a general upward trend. In 2013, the average home price was $105,786, which increased to $173,126 by 2022, representing a 63.7% increase over this period.
The relationship between federal interest rates and homeownership rates in Crestview follows an expected pattern. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.4%), homeownership rates were relatively stable, hovering around 70-80%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, dropping from 59% in 2017 to 48% in 2022.
The renter population in Crestview has grown substantially, from 18% in 2013 to 52% in 2022. This shift coincides with fluctuations in average rent prices. In 2013, the average rent was $1,046, which decreased to $891 in 2018 before rising again to $1,037 in 2022. The population of Crestview has also varied, peaking at 2,026 in 2017 before settling at 1,750 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, Crestview's housing market continued its upward trajectory. The average home price reached $181,997 in 2023 and further increased to $189,111 in 2024. This represents a 9.2% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the neighborhood.
Looking ahead, based on the observed trends, we can predict that average home prices in Crestview may continue to rise over the next five years, potentially reaching around $220,000 by 2029. Average rent prices, which have shown more volatility, may stabilize around $1,100-$1,200 per month, assuming continued population growth and demand for rental properties.
In summary, Crestview has experienced a significant shift from a predominantly owner-occupied neighborhood to one with a more balanced mix of owners and renters. This transition has occurred alongside rising home values and fluctuating rent prices, influenced by broader economic factors such as interest rates. The continued rise in home prices and high interest rates may further shape the neighborhood's housing landscape in the coming years.
