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Rising Home Values and Shifting Ownership in Zip Code 36608: A Decade of Change in Mobile, Alabama
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 36608, located in Mobile, Alabama, has experienced fluctuating trends in homeownership rates and housing prices over the past decade. This area, known for its diverse neighborhoods and proximity to the University of South Alabama, has seen interesting shifts in its real estate market dynamics.
From 2013 to 2022, the homeownership rate in zip code 36608 showed a gradual decline. In 2013, 62% of housing units were owner-occupied, but by 2022, this figure had decreased to 58%. During this same period, average home prices demonstrated a significant upward trend. In 2013, the average home price was $140,045, which increased to $218,282 by 2022, representing a substantial 55.9% rise over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 61-62%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 58%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Examining renter percentages and average rent prices reveals an interesting dynamic. The percentage of renter-occupied housing units increased from 38% in 2013 to 42% in 2022. Concurrently, average rent prices rose from $891 in 2013 to $1,007 in 2022, an increase of 13%. This growth in both renter percentage and rent prices suggests a growing demand for rental properties in the area, possibly driven by factors such as population growth (from 35,851 in 2013 to 35,860 in 2022) and changing housing preferences.
Looking at the most recent data, the average home price in zip code 36608 reached $226,121 in 2023 and further increased to $231,257 in 2024. This represents a continued upward trend in home values. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 36608 will continue to rise, potentially reaching around $260,000 to $270,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,200 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 36608 has experienced a gradual shift towards more renter-occupied housing units, alongside substantial increases in both average home prices and rent prices. The area's real estate market has shown resilience and growth, with home values appreciating significantly despite fluctuations in homeownership rates. The recent sharp rise in interest rates may influence future trends, potentially affecting affordability and homeownership rates in the coming years.
