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Rising Home Values and Shifting Ownership in Zip Code 36360: Ozark's Evolving Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 36360, encompassing Ozark in Alabama, presents an intriguing case study of housing market dynamics in a small Southern city. Over the past decade, this area has experienced fluctuations in homeownership rates, coupled with a steady increase in average home prices and rental costs. The interplay between these factors offers insights into the local real estate landscape and economic conditions.
The homeownership rate in zip code 36360 has shown a slight decline over the years. In 2013, 64% of housing units were owner-occupied. This figure rose to 66% in 2015 and 2016 but gradually decreased to 63% by 2022. Concurrently, average home prices have demonstrated a consistent upward trend. In 2013, the average home price was $92,132. By 2022, it had increased significantly to $130,054, representing a 41% rise over this period.
Federal interest rates appear to have influenced homeownership rates in this area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates reached their peak at 66%. As interest rates began to rise more substantially from 2017 onwards, homeownership rates started to decline slightly, settling at 63% by 2022 when the federal interest rate was 1.68%.
The rental market in zip code 36360 has also seen notable changes. The percentage of renter-occupied housing units increased from 34% in 2015 to 37% in 2022. This shift coincided with a rise in average rent prices. In 2013, the average rent was $666 per month. By 2022, it had increased to $760, marking a 14% increase over this period. The population in this zip code has remained relatively stable, fluctuating between 18,500 and 19,500 residents, which suggests that changes in rental demand are more likely due to economic factors rather than significant population shifts.
Looking at the most recent data, average home prices in zip code 36360 continued their upward trajectory, reaching $140,807 in 2023 and $144,179 in 2024. This represents a further 10.9% increase from 2022 to 2024. Notably, federal interest rates also saw a significant rise, climbing to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 36360 will continue to rise, potentially reaching around $165,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $850 per month within the same timeframe. These projections assume a continuation of current economic conditions and local market factors.
In summary, zip code 36360 has experienced a gradual shift towards more renter-occupied housing units over the past decade, alongside consistent increases in both average home prices and rent costs. The inverse relationship between rising interest rates and declining homeownership rates is notable. As the area moves forward, the interplay between these factors will likely continue to shape the local housing market, with both home prices and rents expected to maintain their upward trajectory in the coming years.
