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Rising Home Values and Shifting Ownership in Rolling Acres, 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
Rolling Acres, a neighborhood in Mobile, Alabama, has experienced significant changes in homeownership and housing prices over the past decade. The area has seen a general trend of decreasing homeownership, while average home prices have shown steady growth, particularly in recent years. Average rent prices have also demonstrated an upward trajectory, reflecting the changing dynamics of the local housing market.
The relationship between homeownership rates and average home prices in Rolling Acres presents an interesting pattern. In 2013, the neighborhood had a high homeownership rate of 83%, coinciding with an average home price of $143,414. However, as average home prices steadily increased, reaching $228,241 in 2022, the homeownership rate declined to 66%. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Rolling Acres. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively high, though they did begin to decline from 83% in 2013 to 67% in 2016. As interest rates started to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates continued to fluctuate, settling at 66% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in Rolling Acres has shown an overall increase, correlating with rising average rent prices. In 2013, only 16% of the population were renters, with an average rent of $990. By 2022, the renter percentage had more than doubled to 34%, while the average rent increased to $977. Interestingly, despite the overall upward trend in rent prices, there have been fluctuations, with the highest average rent of $1,373 recorded in 2019 when 30% of the population were renters. These trends suggest a growing demand for rental properties in the neighborhood, potentially driven by the rising home prices that may have priced some residents out of the buyer's market.
In 2023 and 2024, Rolling Acres continued to experience growth in average home prices. The average home price reached $239,596 in 2023 and further increased to $242,521 in 2024. This represents a significant 6.2% increase from 2022 to 2024. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Rolling Acres are likely to continue their upward trajectory over the next five years. Based on the historical data and current trends, we can expect average home prices to potentially reach around $275,000 to $290,000 by 2029. Average rent prices are also projected to increase, potentially reaching $1,200 to $1,300 per month in the same timeframe, assuming current trends persist.
In summary, Rolling Acres has experienced a shift towards a more rental-oriented market over the past decade, with decreasing homeownership rates despite rising average home prices. The interplay between federal interest rates, housing affordability, and rental demand has shaped these trends. As the neighborhood continues to evolve, it will be crucial to monitor how these factors influence the local real estate market and community composition in the coming years.
