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Rising Home Values and Shifting Ownership in Zip Code 35071: Gardendale's 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
Zip code 35071, located in Gardendale, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has maintained a relatively high rate of homeownership, with a slight decrease in recent years, while average home prices have shown a consistent upward trend. The ownership percentage in zip code 35071 has seen a gradual decline from 83% in 2013 to 80% in 2022. During this same period, average home prices have increased significantly. In 2013, the average home price was $157,734, and by 2022, it had risen to $260,706, representing a 65% increase over nine years. This inverse relationship between homeownership rates and home prices suggests that rising property values may be making it more challenging for some residents to enter the housing market.
Federal interest rates have played a role in homeownership trends in zip code 35071. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 82-83%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decrease in homeownership to 80%. This pattern aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The renter percentage in zip code 35071 has increased from 17% in 2013 to 20% in 2022, mirroring the decline in homeownership. Average rent prices have fluctuated during this period, starting at $930 in 2013, peaking at $989 in 2016, and then settling at $956 in 2022. The population has grown from 16,493 in 2013 to 18,058 in 2022, which may have contributed to the increased demand for rental properties and the slight uptick in average rent prices.
In 2023, the average home price in zip code 35071 reached $268,795, showing continued growth from the previous year. The federal interest rate in 2023 was 5.02%, a significant increase from 2022. Moving into 2024, the average home price has further increased to $270,841, while the federal interest rate has risen to 5.33%. These higher interest rates may impact home affordability and potentially influence future homeownership rates in the area.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in zip code 35071 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are likely to follow a similar upward trajectory, driven by population growth and increased demand for rental properties. However, the rate of increase for both home prices and rents may moderate compared to the rapid growth seen in recent years.
In summary, zip code 35071 has maintained a high rate of homeownership despite rising average home prices. The gradual increase in the renter population, coupled with fluctuating rent prices, reflects the area's changing demographics and housing market dynamics. The recent surge in federal interest rates and continued growth in home prices suggest that the housing market in this zip code is likely to remain competitive, with potential challenges for new homebuyers in the coming years.
