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Shorter, Alabama: Average Home Values and Ownership Trends in a Volatile Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Shorter, Alabama, is a small community that has experienced notable fluctuations in its population and housing market over the past decade. The city has seen shifts in homeownership rates and rental trends, accompanied by changes in average home prices and rent values.
The homeownership rate in Shorter has shown a general decline from 2013 to 2019, followed by a recovery in recent years. In 2013, the homeownership rate stood at 82%, but it decreased to 68% by 2019. However, there was a significant rebound, with the rate rising to 77% in 2022. This trend coincides with changes in average home prices, which have shown an upward trajectory in recent years. The average home price increased from $124,008 in 2021 to $135,428 in 2022, representing a 9.2% increase.
Federal interest rates have played a role in homeownership trends in Shorter. The period of low interest rates from 2010 to 2021, with rates ranging from 0.08% to 0.4%, likely contributed to the maintenance of relatively high homeownership rates. However, as interest rates began to rise in 2022 to 1.68%, and then sharply to 5.02% in 2023, this may have impacted homeownership accessibility for some residents.
The rental market in Shorter has shown interesting trends as well. The percentage of renters increased from 18% in 2013 to a peak of 32% in 2019, before decreasing to 23% in 2022. Average rent prices have been volatile, with significant fluctuations. For instance, the average rent decreased from $677 in 2017 to $486 in 2018, a 28% drop. However, there was a substantial increase in recent years, with the average rent rising from $490 in 2019 to $940 in 2021, a 92% increase over two years.
Looking at the most recent data, the average home price in Shorter was $134,739 in 2023 and $134,265 in 2024, showing a slight decrease of 0.35%. This slight decline occurs against the backdrop of high federal interest rates, which stood at 5.02% in 2023 and increased further to 5.33% in 2024.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in Shorter may experience moderate growth, potentially reaching around $145,000 by 2029. The rental market is likely to continue its upward trajectory, with average rents potentially exceeding $1,000 per month within the next five years, assuming current economic conditions persist.
In summary, Shorter has experienced significant shifts in its housing market over the past decade. The city has seen a recent recovery in homeownership rates, rising average home prices, and volatile but generally increasing rent prices. The interplay between federal interest rates, local economic conditions, and housing affordability will continue to shape the real estate landscape in this Alabama community.
