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Rising Home Values in North Crichton, Mobile: A Decade of Fluctuating Ownership
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
North Crichton, a neighborhood in Mobile, Alabama, has experienced significant changes in its real estate market over the past decade. The area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in North Crichton has shown considerable volatility between 2013 and 2022. Starting at 38% in 2013, it steadily increased to reach a peak of 56% in 2019, before dropping to 46% by 2022. Interestingly, these changes in homeownership rates did not always correlate directly with average home prices. While the homeownership rate was increasing from 2013 to 2019, average home prices actually decreased slightly from $35,454 to $35,515 during the same period.
The relationship between federal interest rates and homeownership rates in North Crichton appears to follow expected patterns to some extent. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.40%), the homeownership rate increased from 38% to 55%. However, even as interest rates began to rise more significantly from 2017 to 2019 (1.00% to 2.16%), homeownership rates in the neighborhood continued to increase slightly, reaching 56% in 2019. This suggests that other local factors may have influenced homeownership decisions during this period.
Renter percentages and average rent prices in North Crichton have also shown interesting trends. In 2013, 62% of residents were renters, with an average rent of $726. As the renter percentage decreased to 44% in 2019, average rent prices fluctuated, reaching a high of $853 in 2016 before dropping to $631 in 2019. Notably, despite a significant increase in the renter population from 44% in 2019 to 54% in 2022, average rent prices actually decreased from $631 to $447 during this period. This counterintuitive trend might be influenced by broader economic factors or changes in the local housing market.
Looking at the most recent data, average home prices in North Crichton increased to $45,535 in 2023 and further to $50,930 in 2024. This represents a significant jump from the $43,911 average in 2022. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis. These higher interest rates may impact future homeownership trends in the neighborhood.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in North Crichton will continue to rise, potentially reaching around $60,000 by 2029. However, this growth may be moderated by the current high interest rates. Average rent prices are expected to stabilize and potentially increase slightly, possibly reaching $500-$550 per month by 2029, assuming economic conditions remain relatively stable.
In summary, North Crichton has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. The neighborhood has shown resilience in its housing market, with recent increases in average home prices despite rising interest rates. The complex interplay between these factors suggests a dynamic local real estate market that responds to both broader economic trends and specific community factors.
