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Rising Home Values and Stable Ownership in Zip Code 35984: Mentone's Resilient Housing Market
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 35984, located in Mentone, Alabama, presents an intriguing landscape of homeownership and rental trends over the past decade. This small town has experienced fluctuations in its ownership percentages, average home prices, and average rent prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in Mentone has remained relatively stable, with a slight overall decline from 2013 to 2022. In 2013, the ownership rate stood at 82%, reaching a peak of 84% in 2015 before settling at 81% in 2022. This trend coincides with significant growth in average home prices. The average home price in 2010 was $132,740, and by 2022, it had more than doubled to $282,049, representing a 112.5% increase over 12 years. This substantial appreciation in home values likely contributed to maintaining high homeownership rates despite economic fluctuations.
Federal interest rates have played a crucial role in shaping homeownership trends in Mentone. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely supported the high homeownership rates observed during this time. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decline in homeownership from its peak, suggesting that higher borrowing costs may have impacted some residents' ability to purchase homes.
The rental market in Mentone has shown interesting trends as well. The percentage of renters increased from 18% in 2013 to 22% in 2019, before decreasing slightly to 18% in 2022. Average rent prices have risen significantly over this period, from $669 in 2013 to $972 in 2022, representing a 45.3% increase. This rise in rent prices, coupled with the fluctuations in the renter population, suggests a dynamic rental market responding to changes in the local economy and housing availability.
In 2023 and 2024, the housing market in Mentone continued its upward trajectory. The average home price reached $293,517 in 2023 and further increased to $305,142 in 2024, representing a 4.1% and 3.9% year-over-year growth, respectively. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for some buyers.
Looking ahead, predictive models suggest that both average home prices and rent prices in Mentone are likely to continue their upward trend over the next five years. Home prices are projected to increase by approximately 3-4% annually, potentially reaching around $360,000 by 2029. Rent prices are expected to grow at a similar rate, possibly surpassing $1,200 per month by the end of the five-year period. However, these projections are subject to various economic factors and local market conditions.
In summary, Mentone's housing market has demonstrated resilience and growth over the past decade. The town has maintained a high rate of homeownership despite significant increases in home values, while also experiencing growth in its rental market. The continuation of rising home prices and rents, even in the face of higher interest rates, suggests a strong local housing market with potential for further appreciation in the coming years.
