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Saks, Alabama: Stable Homeownership Amid Rising Home Values
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
Saks, Alabama is a census-designated place located in Calhoun County. This small community has experienced fluctuations in population and housing trends over the past decade. The ownership percentage has remained relatively stable, while average home prices and average rent prices have shown notable increases.
The homeownership rate in Saks has fluctuated slightly but remained generally consistent between 2013 and 2022. In 2013, the ownership rate was 75%, and by 2022, it stood at 76%. During this period, average home prices showed a significant upward trend. In 2013, the average home price was $88,829, which increased to $136,286 by 2022, representing a 53.4% rise over nine years. This trend suggests that despite the substantial increase in home prices, residents of Saks have maintained a strong preference for homeownership.
Federal interest rates have played a role in homeownership trends in Saks. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 75-76%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), there was a slight fluctuation in homeownership, but it remained resilient, even reaching 78% in 2019. This suggests that other local factors may have a stronger influence on homeownership in Saks than national interest rate trends.
Renter percentages in Saks have shown minor fluctuations, ranging from 22% to 27% between 2013 and 2022. Interestingly, average rent prices have demonstrated volatility during this period. In 2013, the average rent was $670, which increased to $771 in 2018, representing a 15% rise. However, rent prices then decreased to $678 in 2019 before rising again to $770 in 2022. This volatility in rent prices, coupled with the relatively stable renter percentage, suggests that local economic factors and housing supply may be influencing the rental market more than population changes.
In 2023, the average home price in Saks slightly decreased to $135,304 from the previous year's $136,286. However, in 2024, it has rebounded to $137,520, showing continued growth in the housing market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these high interest rates, the housing market in Saks appears to be maintaining its upward trajectory.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Saks will likely continue to rise over the next five years, albeit at a more moderate pace. Given the recent increases and the high interest rate environment, we might expect average home prices to reach around $150,000 to $160,000 by 2029. For rent prices, considering the historical volatility, we can anticipate continued fluctuations. However, the overall trend suggests a gradual increase, potentially reaching an average of $850 to $900 per month by 2029.
In summary, Saks has demonstrated a robust and stable housing market characterized by high homeownership rates despite rising home prices. The rental market, while more volatile, has also shown an overall upward trend. The community's resilience in maintaining homeownership levels, even in the face of increasing home prices and rising interest rates, suggests a strong local economy and a continued preference for homeownership among residents.
