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Rising Home Values and Shifting Ownership in Malibar Heights, Mobile
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
Malibar Heights, a neighborhood in Mobile, Alabama, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen fluctuations in its population and housing market, reflecting broader economic trends and local developments. The homeownership rate in Malibar Heights has shown a general decline since 2013, with some fluctuations. In 2013, the neighborhood had an even split between owners and renters at 50% each. However, by 2022, the ownership rate had decreased to 45%. This trend coincided with a notable increase in average home prices. In 2013, the average home price was $103,384, which steadily rose to $166,127 by 2022, representing a substantial 60.7% increase over this period.
The relationship between federal interest rates and homeownership rates in Malibar Heights shows some correlation. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable around 40-43%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, we observed some fluctuations in homeownership rates, with a slight increase to 45% in 2022.
Renter percentages in Malibar Heights have generally increased over time, from 50% in 2013 to 55% in 2022. This trend has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $1,027, which peaked at $1,206 in 2016 before declining to $986 in 2022. Interestingly, the highest renter percentage of 60% was observed in 2016, coinciding with the highest average rent price during this period.
Looking at the most recent data, the average home price in Malibar Heights reached $176,215 in 2023 and further increased to $180,813 in 2024. This represents a 6.1% increase from 2022 to 2023 and a 2.6% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Malibar Heights will continue to rise, albeit at a more moderate pace. By 2029, average home prices could potentially reach around $200,000 to $220,000, assuming current economic conditions persist. For rent prices, the forecast suggests a gradual increase, potentially reaching an average of $1,100 to $1,200 per month by 2029.
In summary, Malibar Heights has experienced a shift towards a higher proportion of renters over the past decade, coupled with significant increases in average home prices. The neighborhood has shown resilience in its housing market, with property values consistently appreciating despite fluctuations in population and economic conditions. The recent sharp rise in interest rates may influence future homeownership trends, potentially favoring the rental market in the short term. However, the continued increase in average home prices suggests ongoing demand for property in this Mobile neighborhood.
