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Wilsonville, Alabama: Rising Home Values and Strong Ownership Rates in a Resilient Housing Market
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
Wilsonville, Alabama, a charming town located in Shelby County, has experienced notable shifts in its housing market over the past decade. With a population of 3,916 in 2022 and spanning 10.63 square miles, this small community has seen fluctuations in homeownership rates, average home prices, and average rent prices that reflect broader economic trends.
The homeownership rate in Wilsonville has remained relatively stable, hovering around 80% throughout most of the observed period. In 2013, the town had a homeownership rate of 75%, which increased to 81% by 2014 and maintained this level for several years. The rate peaked at 86% in 2017 before settling back to 81% in 2022. Concurrently, average home prices in Wilsonville have shown a consistent upward trend. In 2013, the average home price was $178,822, and by 2022, it had risen significantly to $320,156, representing a remarkable 79% increase over this period.
The relationship between federal interest rates and homeownership rates in Wilsonville demonstrates some interesting patterns. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates increased from 75% to 81%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, even as interest rates began to rise more sharply from 2017 onwards, Wilsonville maintained a high homeownership rate, suggesting other local factors may have influenced this stability.
Renter percentages in Wilsonville have generally been the inverse of homeownership rates, ranging from a high of 25% in 2013 to a low of 14% in 2017, before settling at 19% in 2022. Average rent prices have shown some volatility over the years. In 2013, the average rent was $1,007, which increased to $1,239 by 2017, representing a 23% rise. However, rent prices then decreased, reaching $893 in 2022, a 28% drop from the 2017 peak. This fluctuation in rent prices could be attributed to changes in local economic conditions or housing supply.
Looking at the most recent data, the average home price in Wilsonville continued its upward trajectory, reaching $324,847 in 2023 and further increasing to $337,583 in 2024. This represents a 5.4% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest levels seen since 2007. Despite these higher interest rates, the housing market in Wilsonville appears to remain robust.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Wilsonville will continue to rise, albeit potentially at a slower rate due to the higher interest rate environment. By 2029, average home prices could potentially reach the $380,000 to $400,000 range. Average rent prices, which have shown more volatility, may stabilize and gradually increase, potentially reaching $1,100 to $1,200 per month by 2029, assuming economic conditions remain favorable and population growth continues.
In summary, Wilsonville has maintained a strong homeownership rate despite fluctuations in the housing market. The town has seen significant appreciation in average home values, with prices nearly doubling over the past decade. While rent prices have shown more variability, they have generally remained affordable relative to home prices. The resilience of Wilsonville's housing market in the face of rising interest rates suggests a strong local economy and continued demand for housing in this Alabama town.
