Loading Content...
Rising Home Values and Shifting Ownership in Gorgas: Mobile's Evolving 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
Gorgas, a neighborhood in Mobile, Alabama, has experienced significant changes in its housing market over the past decade. The area has seen notable increases in homeownership rates and average home prices, reflecting broader economic trends and local market dynamics. From 2013 to 2020, the homeownership rate in Gorgas rose from 51% to 62%, coinciding with a substantial increase in average home prices from $33,311 to $49,029, representing a 47% increase over seven years.
The relationship between federal interest rates and homeownership rates in Gorgas appears to follow the general economic principle that lower interest rates encourage homeownership. For instance, from 2013 to 2016, when federal interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate in Gorgas increased from 51% to 56%. As interest rates began to rise more significantly in 2017 (1.00%) and 2018 (1.83%), the homeownership rate continued to increase, reaching 61% in 2018, possibly due to residents anticipating further rate increases and deciding to enter the housing market.
Renter percentages and average rent prices in Gorgas have shown an inverse relationship to homeownership rates. As homeownership increased, the percentage of renters decreased from 49% in 2013 to 38% in 2020. Average rent prices fluctuated during this period, starting at $875 in 2013, decreasing to $643 in 2018, before rising again to $760 in 2020. These fluctuations in rent prices may be attributed to changes in housing supply and demand, as well as the overall economic conditions in the area.
In 2023 and 2024, Gorgas has seen a continuation of the upward trend in average home prices. The average home price in 2023 was $53,891, showing a slight increase from 2022. In 2024, the average home price has risen to $57,786, representing a 7.2% increase from the previous year. This rise in home prices coincides with higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and potentially slow down the rate of homeownership growth in the near future.
Looking ahead, predictive models suggest that average home prices in Gorgas may continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, possibly at a faster rate than in recent years, as higher home prices and interest rates may push more residents towards renting. However, the exact trajectory will depend on various factors, including local economic conditions, population growth, and broader market trends.
In summary, Gorgas has experienced a notable increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the percentage of renters. The neighborhood has shown resilience in its housing market, with home prices continuing to rise even in the face of increasing interest rates. As we move forward, the interplay between homeownership rates, home prices, and rent prices will likely continue to shape the housing landscape in this Mobile neighborhood.
