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Rising Home Values and Stable Ownership: Analyzing Zip Code 35901 in Gadsden, 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 35901, located in Gadsden, Alabama, presents an intriguing blend of housing dynamics. This area has experienced fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. The zip code covers 65.09 square miles and had a population of 19,217 in 2022, offering a mix of urban and suburban living environments.
Homeownership rates in zip code 35901 have remained relatively stable, with slight fluctuations between 63% and 65% from 2013 to 2022. Despite this stability, average home prices have shown a significant upward trend. In 2010, the average home price was $84,647, which steadily increased to $148,445 by 2022, representing a 75.4% increase over 12 years. This substantial rise in home values did not significantly impact homeownership rates, suggesting other factors may be influencing residents' ability or desire to own homes.
Federal interest rates have played a role in the housing market of zip code 35901. From 2010 to 2016, interest rates remained historically low, hovering below 0.5%. During this period, homeownership rates stayed relatively consistent around 63-64%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership to 65% in 2017 and 2018, possibly due to residents securing mortgages before further rate increases.
Renter percentages in zip code 35901 have mirrored homeownership rates, fluctuating between 35% and 37% from 2013 to 2022. Average rent prices have shown an overall upward trend, increasing from $647 in 2013 to $693 in 2022, a 7.1% rise. However, this increase has not been consistent, with some years showing decreases. For instance, average rent peaked at $744 in 2021 before dropping to $693 in 2022. The population in the zip code has generally decreased from 20,739 in 2013 to 19,217 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, the housing market in zip code 35901 showed interesting developments. The average home price slightly decreased from $148,445 in 2022 to $144,117 in 2023, before rising marginally to $145,570 in 2024. This slight cooling in the market coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and buyer behavior.
Looking ahead, predictive models suggest that average home prices in zip code 35901 may continue to rise moderately over the next five years, potentially reaching around $160,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $750 per month within the same timeframe, assuming current economic conditions and population trends persist.
The most significant discoveries in zip code 35901 include the substantial increase in average home prices despite relatively stable homeownership rates, the resilience of the rental market despite population decreases, and the recent cooling of home price growth coinciding with rising interest rates. These trends suggest a complex interplay between economic factors, population dynamics, and housing preferences in this Alabama community.
