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Rising Home Values and Shifting Ownership in Hazel Green, Alabama: A Decade of Housing Market Dynamics
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
Hazel Green, located in Alabama, is a growing community that has experienced notable shifts in its housing market over the past decade. The city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
Homeownership rates in Hazel Green have shown a general decline from 2013 to 2022, despite some fluctuations. In 2013, the homeownership rate was 85%, which gradually decreased to 77% by 2022. This trend coincides with a significant increase in average home prices. In 2013, the average home price was $130,402, which rose steadily to $243,628 by 2022, representing an impressive 86.8% increase over the decade. This substantial rise in home prices may have contributed to the decline in homeownership rates, as housing became less affordable for some residents.
The relationship between federal interest rates and homeownership rates in Hazel Green shows some correlation. For instance, the period from 2013 to 2015 saw relatively low interest rates (0.11% to 0.13%) and high homeownership rates (85% to 81%). However, as interest rates began to rise more significantly from 2016 onwards, reaching 1.68% by 2022, homeownership rates showed a general downward trend, dropping to 77% in 2022. This aligns with the principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Hazel Green have inversely mirrored the homeownership trends, increasing from 15% in 2013 to 23% in 2022. Interestingly, average rent prices have shown a different pattern. In 2013, the average rent was $949, which decreased to $778 by 2022, a 18% reduction. This decrease in average rent prices, despite the increase in renter percentages, could be attributed to various factors such as an increase in housing supply or changes in the local economy. The population growth from 4,669 in 2013 to 5,051 in 2022 may have also influenced these trends, potentially increasing demand for rental properties while simultaneously putting downward pressure on rent prices due to increased competition among landlords.
In 2023 and 2024, the housing market in Hazel Green continued to evolve. The average home price in 2023 reached $251,690, a 3.3% increase from 2022. In 2024, it further increased to $253,806, showing a slower growth rate of 0.8%. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. Average home prices in Hazel Green may continue to increase, albeit at a slower rate, potentially reaching around $275,000 to $290,000 by 2029. Average rent prices, which have been declining, might stabilize or see a slight increase, possibly reaching $800 to $850 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, Hazel Green has experienced a gradual shift towards more renters and higher average home prices over the past decade. The inverse relationship between homeownership rates and average home prices, coupled with the impact of changing interest rates, has shaped the local housing market. The recent slowdown in home price growth and the historically high interest rates suggest that the market may be entering a new phase, potentially affecting future homeownership rates and housing affordability in this Alabama community.
