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Southside, Alabama: Rising Home Values and High Ownership Rates
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
Southside, Alabama, a growing community in the northeastern part of the state, has experienced significant changes in its housing market over the past decade. This city has maintained a high percentage of owner-occupied housing, despite slight decreases in recent years, while average home prices have shown a consistent upward trend. These developments reflect the dynamic nature of Southside's real estate landscape.
The homeownership rate in Southside has seen a gradual decline from 93% in 2013 to 90% in 2022. Despite this slight decrease, the city still maintains a significantly high rate of owner-occupied housing compared to national averages. Concurrently, average home prices have shown a steady increase, rising from $145,795 in 2013 to $241,684 in 2022, representing a substantial 65.8% increase over this period.
The relationship between federal interest rates and homeownership rates in Southside follows a generally established trend. As interest rates remained low between 2013 and 2021, ranging from 0.08% to 1.83%, the city maintained high homeownership rates. However, the slight decrease in homeownership from 93% to 90% during this period suggests that other factors, such as rising home prices, may have influenced buying decisions despite favorable interest rates.
The percentage of renters in Southside has increased modestly from 7% in 2013 to 10% in 2022. This trend corresponds with fluctuations in average rent prices. The average rent price rose from $1,015 in 2013 to $1,055 in 2021, before decreasing to $953 in 2022. The population growth from 9,550 in 2013 to 10,317 in 2022 may have contributed to the increased demand for rental properties, despite the slight decrease in average rent prices in the most recent year.
In 2023 and 2024, Southside experienced continued growth in average home prices. The average home price reached $250,093 in 2023 and further increased to $262,057 in 2024, representing a 4.8% year-over-year increase. This growth occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for some homebuyers.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Southside may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could potentially reach around $300,000 by 2029. For average rent prices, we might expect a moderate increase, possibly reaching $1,100-$1,200 per month by 2029, assuming continued population growth and demand for rental properties.
In summary, Southside has maintained a strong homeownership market despite rising home prices and recent increases in interest rates. The slight shift towards more renters, coupled with fluctuating rent prices, indicates a dynamic housing market responding to population growth and economic factors. The continued rise in home values suggests ongoing demand for housing in this Alabama city, making it an area of interest for both homeowners and investors in the coming years.
