Loading Content...
Rising Home Values in Rehobeth, Alabama: A Decade of Stability Amid Growth
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Rehobeth, located in Alabama, is a small community that has experienced fluctuations in population and housing dynamics over the past decade. The town has maintained a relatively stable homeownership rate, with average home prices showing a steady increase. Meanwhile, average rent prices have also risen, reflecting the changing economic landscape of the area.
Homeownership rates in Rehobeth have remained relatively consistent, ranging from 70% to 73% between 2013 and 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $153,054, which increased to $239,503 by 2022, representing a significant 56.5% increase over nine years. This trend suggests that despite rising home values, Rehobeth has managed to maintain a stable proportion of homeowners.
The relationship between federal interest rates and homeownership rates in Rehobeth appears to follow general economic principles. For instance, in 2013, when interest rates were low at 0.11%, the homeownership rate was 71%. As interest rates remained low through 2020 (0.38%), homeownership rates stayed relatively stable, fluctuating between 70% and 73%. This stability in homeownership, even as home prices increased, may be attributed to the favorable borrowing conditions created by low interest rates.
Renter percentages in Rehobeth have correspondingly remained stable, ranging from 27% to 30% between 2013 and 2022. Average rent prices, however, have shown a steady increase during this period. In 2013, the average rent was $632, which rose to $897 by 2022, marking a 41.9% increase. This rise in rent prices outpaced population growth, as the town's population only increased by about 0.5% from 6,586 in 2013 to 6,551 in 2022, suggesting other factors such as housing demand and overall economic conditions may have influenced rent prices.
Looking at the most recent data, the average home price in Rehobeth reached $251,472 in 2023 and further increased to $259,553 in 2024. This represents a 8.4% increase from 2022 to 2024, indicating a continued upward trend in home values. Concurrently, federal interest rates rose significantly to 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, it's anticipated that average home prices in Rehobeth will continue to rise, potentially reaching around $300,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,000 per month within the same timeframe. These projections assume a continuation of current economic conditions and local market trends.
In summary, Rehobeth has demonstrated resilience in maintaining stable homeownership rates despite rising home prices. The relationship between low interest rates and sustained homeownership levels is evident. Rent prices have increased more rapidly than population growth, suggesting a competitive rental market. As home prices and interest rates continue to rise, it will be crucial to monitor how these factors influence the balance between homeownership and renting in this Alabama community.
