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Zip Code 35004: Rising Home Values and Shifting Ownership Patterns in Moody, Alabama
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
Zip code 35004, located in Moody, Alabama, has experienced significant demographic and housing market changes over the past decade. This area has seen a notable increase in population, rising from 8,565 in 2010 to 11,386 in 2022, indicating a growing community with evolving housing needs.
The homeownership rate in zip code 35004 has shown a slight downward trend over the years. In 2013, the homeownership rate stood at 79%, gradually decreasing to 75% by 2022. This shift coincided with a substantial increase in average home prices, which rose from $143,742 in 2010 to $256,709 in 2022, representing a 78.6% increase over 12 years. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 79-81%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a gradual decline, dropping to 75% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 35004 has shown an upward trend, increasing from 19% in 2013 to 25% in 2022. This rise in renters coincided with fluctuations in average rent prices. Average rent peaked at $1,097 in 2017 before experiencing some volatility, ultimately settling at $949 in 2022. The increase in the renter population, despite the fluctuations in rent prices, may be attributed to the growing overall population and the decreased affordability of homeownership in the area.
In 2023 and 2024, the housing market in zip code 35004 showed signs of stabilization. The average home price in 2023 was $261,066, a slight increase from 2022. However, in 2024, there was a minor decrease to $260,084. This leveling off coincides with a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of home price growth in the area.
Looking ahead, predictive models suggest that average home prices in zip code 35004 may continue to experience moderate growth over the next five years, albeit at a slower pace than observed in the previous decade. This projection is based on the area's consistent population growth and the recent stabilization of prices. Average rent prices are expected to follow a similar trend, with modest increases anticipated as the demand for rental properties remains steady due to the growing population and the challenges of homeownership affordability.
In summary, zip code 35004 has witnessed a gradual shift from a predominantly homeowner community to one with a growing renter population. This change has been influenced by rising home prices, fluctuating interest rates, and steady population growth. The recent stabilization of home prices, coupled with high interest rates, suggests a potential rebalancing of the housing market in the coming years. These trends highlight the dynamic nature of the local real estate market and its responsiveness to broader economic factors.
