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Rising Home Values and Stable Ownership: Overton's Unique Housing Landscape 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
Overton, a neighborhood in Mobile, Alabama, has experienced dynamic shifts in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. The ownership percentage in Overton has shown slight variations over the years, with a general trend towards stability. In 2013, the homeownership rate stood at 39%, increasing to 46% by 2015 and remaining relatively steady through 2021. Concurrently, average home prices in the neighborhood have demonstrated a consistent upward trajectory. From 2013 to 2022, average home prices rose from $218,183 to $334,889, representing a substantial increase of 53.5% over this period. Federal interest rates have played a significant role in shaping homeownership trends in Overton. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. This coincided with a rise in homeownership from 39% to 46%. As interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, the homeownership rate remained relatively stable, fluctuating between 43% and 49%. This stability suggests that other factors, such as local economic conditions and housing supply, may have counterbalanced the impact of rising interest rates on homeownership.
Renter percentages in Overton have mirrored the homeownership trends, showing slight fluctuations over the years. The proportion of renters decreased from 61% in 2013 to 54% in 2015, where it remained relatively stable through 2021. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $948, rising to $1,085 by 2021, an increase of 14.5%. Notably, there was a significant jump in average rent from $980 in 2019 to $1,002 in 2020, coinciding with a population increase from 4,400 to 4,654 during the same period.
The latest data for 2023 and 2024 reveals continued growth in the housing market. Average home prices in Overton reached $345,704 in 2023 and further increased to $352,388 in 2024. This represents a 5.2% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Looking ahead, based on the observed trends, we can anticipate continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to maintain their upward trajectory, potentially reaching around $400,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. However, these projections may be influenced by various factors, including economic conditions, local development, and changes in federal interest rates.
In summary, Overton has demonstrated resilience in its housing market, with stable homeownership rates despite rising home prices and fluctuating interest rates. The neighborhood has experienced consistent growth in both average home values and rent prices, reflecting its desirability and the overall strength of the local real estate market. The recent steep rise in interest rates may pose challenges for potential homebuyers, potentially affecting future homeownership rates and market dynamics in this Mobile neighborhood.
