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Rising Home Values and Shifting Ownership in Lillian, Alabama's Coastal Gem
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
Lillian, Alabama, is a small community located in Baldwin County. The city has experienced fluctuating population growth over the past decade, with a notable increase in recent years. Homeownership rates have generally remained high but have shown a slight decline in recent years, while average home prices have seen significant appreciation. Average rent prices have exhibited more moderate changes over time.
The homeownership rate in Lillian has experienced a gradual decline from 93% in 2013 to 83% in 2022. Despite this decrease, the average home prices have shown a substantial increase during the same period. In 2013, the average home price was $131,122, which rose to $287,346 by 2022, representing a remarkable 119% increase over nine years. This inverse relationship suggests that rising home prices may have contributed to the slight decrease in homeownership rates, as some residents potentially found it more challenging to afford homes.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.40%), homeownership rates in Lillian remained relatively stable at around 91-93%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a more noticeable decline, dropping to 83% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Lillian has increased from 7% in 2013 to 17% in 2022, corresponding with the decline in homeownership rates. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $1,320, which increased to $1,462 by 2015. However, rent prices then fluctuated, reaching $1,215 in 2022, which is actually lower than the 2013 level. This trend suggests that other factors, such as increased housing supply or local economic conditions, may have influenced rent prices more than the growing renter population.
In 2023, the average home price in Lillian reached $305,190, and by 2024, it further increased to $313,007. This continued appreciation in home values occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and home price growth in the area.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in Lillian will continue to appreciate over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $350,000 to $375,000 by 2029. Average rent prices, which have shown more volatility, may stabilize and see moderate increases, potentially reaching $1,400 to $1,500 per month by 2029.
In summary, Lillian has experienced a gradual shift from a predominantly homeowner community to one with a growing renter population. Despite this trend, average home prices have seen substantial appreciation, while rent prices have remained relatively stable. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of the local real estate market. As the community continues to evolve, these trends will likely shape the future of housing in Lillian.
