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Westhill, Mobile: Rising Home Values Amidst Declining Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Westhill, a neighborhood in Mobile, Alabama, has experienced significant changes in its housing market over the past decade. This analysis focuses on the trends in homeownership rates, average home values, and rental prices from 2013 to 2024. The data reveals a notable shift towards a renter-majority community, coupled with substantial increases in property values. Homeownership in Westhill has shown a consistent decline from 2013 to 2022. In 2013, 47% of residents owned their homes, but by 2022, this figure had dropped to 39%. Conversely, average home prices demonstrated significant growth during this period. The average home price in 2013 was $149,254, which steadily increased to $229,546 by 2022, representing a substantial 53.8% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Westhill. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable, fluctuating between 41% and 47%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates showed a slight downward trend, reaching 43% in 2019. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not immediately reverse this trend, as homeownership continued to decline to 39% by 2022, possibly due to other economic factors or a lag in the market's response to interest rate changes.
As homeownership decreased, the percentage of renters in Westhill increased from 53% in 2013 to 61% in 2022. Interestingly, average rent prices did not show a consistent upward trend during this period. In 2013, the average rent was $858, which peaked at $873 in 2015 before fluctuating and ultimately settling at $822 in 2022. This suggests that while more residents turned to renting, the rental market remained relatively competitive, preventing significant rent increases. The population of Westhill also fluctuated during this period, reaching a high of 3,689 in 2014 before decreasing to 3,224 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, Westhill experienced continued growth in average home prices. The average home price reached $238,107 in 2023 and further increased to $242,436 in 2024. This represents a 5.6% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics in the neighborhood.
Looking ahead, based on historical trends and current market conditions, we can project potential 5-year trends for Westhill. Average home prices are likely to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $270,000 to $280,000 by 2029. Average rent prices, which have been more stable, may see modest increases, potentially reaching $850 to $900 by 2029, assuming continued demand for rental properties in the area.
In summary, Westhill has experienced a shift towards a renter-majority neighborhood over the past decade, with homeownership rates declining from 47% to 39%. This change has occurred alongside a substantial increase in average home prices, which rose by over 50% from 2013 to 2022. Despite the increase in renters, average rent prices have remained relatively stable. The neighborhood continues to see rising home values, with prices reaching $242,436 in 2024, while facing higher interest rates that may influence future housing market dynamics.
