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Rising Home Values and Shifting Ownership in Llanfair: A Decade of Housing Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Llanfair, a neighborhood in Mobile, Alabama, has experienced significant changes in homeownership and housing prices over the past decade. This predominantly renter-occupied area has seen ownership rates fluctuate between 21% and 34% from 2013 to 2022, while average home prices and rents have generally trended upward. The interplay between these factors reveals the complex nature of Llanfair's housing market.
The relationship between homeownership rates and average home prices in Llanfair has been multifaceted. In 2013, with a 26% ownership rate, the average home price was $229,942. By 2018, as average home prices rose to $264,937, ownership rates decreased to 21%. However, a reversal occurred in 2020, with ownership increasing to 33% alongside a jump in average home prices to $305,280. This trend persisted into 2022, with ownership stable at 33% and average home prices reaching $379,757.
Federal interest rates have played a significant role in Llanfair's homeownership trends. During the period of historically low interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership in the neighborhood increased from 21% in 2019 to 33% in 2020, and further to 34% in 2021. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages and average rent prices in Llanfair have shown a correlation. In 2013, with 74% of the population renting, the average rent was $857. As the renter percentage increased to 79% in 2019, average rent rose to $916. Interestingly, in 2022, despite a decrease in the renter percentage to 67%, average rent continued to climb to $949. This suggests that other factors, such as overall housing demand and local economic conditions, may also influence rent prices.
In 2023 and 2024, average home prices in Llanfair continued their upward trajectory, reaching $386,839 and $393,612 respectively. This occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing market dynamics in the neighborhood.
Looking ahead, based on the observed trends, it's projected that average home prices in Llanfair will continue to rise over the next five years, potentially reaching around $450,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,100 per month within the same timeframe. However, these projections may be influenced by various factors including economic conditions, local development, and changes in federal interest rates.
In summary, Llanfair has experienced a shift towards increased homeownership in recent years, despite rising home prices. The neighborhood has maintained a majority renter population, with rent prices steadily increasing. The interplay between federal interest rates, homeownership rates, and housing prices demonstrates the complex dynamics of the local real estate market. As Llanfair continues to evolve, these trends will likely shape its future demographic and economic landscape.
