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Riviera, Mobile: Home Values Rise Amid Fluctuating Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Riviera, a neighborhood in Mobile, Alabama, has experienced significant changes in its housing market from 2013 to 2022. The area has seen a decline in homeownership rates alongside an increase in average home values, reflecting complex economic trends and local market conditions. Homeownership in Riviera decreased from 53% in 2013 to 51% in 2022. During this period, average home prices rose from $38,114 in 2013 to $53,997 in 2022, marking a 41.7% increase. Despite rising home values, the drop in homeownership suggests that factors such as affordability concerns or changing demographic preferences may have influenced housing choices in the neighborhood.
Federal interest rates have played a crucial role in shaping homeownership trends in Riviera. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period saw some fluctuation in homeownership rates, with a peak of 62% in 2016. However, as interest rates began to rise more significantly in 2022 (1.68%) and 2023 (5.02%), homeownership rates declined, reaching 51% in 2022. This inverse relationship between interest rates and homeownership aligns with the general economic principle that lower rates tend to encourage home buying due to more affordable mortgages.
The rental market in Riviera has shown its own distinct trends. The percentage of renters increased from 47% in 2013 to 49% in 2022. During this period, average rent prices experienced some volatility. In 2013, the average rent was $917, which increased to $986 by 2019, representing a 7.5% increase. However, rent prices then decreased to $927 by 2022, a 6% drop from the 2019 peak. This fluctuation in rent prices, coupled with the increasing renter population, suggests a complex interplay of supply and demand factors in the local rental market.
Looking at the most recent data, average home prices in Riviera continued to rise, reaching $56,830 in 2023 and $61,089 in 2024. This represents a 13.1% increase from 2022 to 2024. Concurrently, federal interest rates climbed to 5.33% in 2024, potentially impacting homebuying decisions in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Riviera will continue to appreciate, albeit at a more moderate pace. By 2029, average home prices could potentially reach around $70,000 to $75,000, assuming current economic conditions persist. For rent prices, the forecast suggests a gradual increase, potentially reaching an average of $1,000 to $1,050 per month by 2029.
In summary, Riviera has experienced a gradual shift towards renting, with homeownership rates declining despite overall increases in property values. The interplay between federal interest rates, home prices, and rental market dynamics has shaped the housing landscape in this Mobile neighborhood. As the area continues to evolve, these trends will likely play a crucial role in determining future housing patterns and community composition.
