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South Titusville: Rising Home Values and Shifting Ownership Patterns
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
South Titusville, a neighborhood in Birmingham, Alabama, has experienced significant fluctuations in homeownership rates and housing prices over the past decade. This area has shown resilience in its real estate market, with notable shifts in the balance between owners and renters. The homeownership rate in South Titusville has seen a gradual decline from 2013 to 2022. In 2013, 69% of housing units were owner-occupied, but by 2022, this figure had decreased to 57%. Interestingly, this decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $39,004, which rose dramatically to $96,490 by 2022, representing a 147% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends in South Titusville. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 63-66%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline more noticeably, dropping to 57% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership declined, the percentage of renters in South Titusville increased from 31% in 2013 to 43% in 2022. This shift corresponded with a rise in average rent prices. In 2013, the average rent was $817, which increased to $983 by 2022, a 20% rise. The population fluctuated during this period, reaching a low of 1,971 in 2013 and a high of 2,555 in 2021, before settling at 2,300 in 2022. These population changes likely influenced the demand for rental properties and, consequently, rent prices.
Looking at the most recent data, the average home price in South Titusville slightly decreased from $96,490 in 2022 to $96,449 in 2023, before rising again to $98,003 in 2024. This represents a modest 1.6% increase from 2022 to 2024. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in South Titusville will continue to rise, albeit at a more modest pace than seen in the past decade. By 2029, average home prices could potentially reach $110,000 to $115,000, assuming current economic conditions persist. For rent prices, the upward trend is likely to continue, with average rents potentially reaching $1,100 to $1,200 per month by 2029.
In summary, South Titusville has experienced a shift towards renting, with homeownership rates declining as average home prices significantly increased. The neighborhood has shown resilience in its real estate market, with both home values and rent prices rising over the past decade. The interplay between federal interest rates, population changes, and housing affordability will continue to shape the landscape of homeownership and renting in this Birmingham neighborhood in the coming years.
