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Zip Code 35020: Fluctuating Home Values and Ownership in Bessemer, 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 35020, located in Bessemer, Alabama, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area, covering 18.62 square miles, has shown resilience in its real estate market despite various economic challenges.
The homeownership rate in zip code 35020 has remained relatively stable, fluctuating between 51% and 55% from 2013 to 2022. In 2013, the ownership rate was 54%, and it maintained this level with minor variations until 2022, when it stood at 53%. Interestingly, the average home prices in this area have shown a significant upward trend. In 2015, the average home price was $33,813, which steadily increased to $69,220 by 2022, representing a substantial 104.7% increase over seven years.
The relationship between federal interest rates and homeownership rates in this zip code presents an intriguing pattern. Despite the federal interest rate dropping from 1.83% in 2018 to 0.08% in 2021, the homeownership rate actually decreased slightly from 52% to 51% during this period. This suggests that other local factors may have a stronger influence on homeownership in this area than national interest rates.
Renter percentages in zip code 35020 have shown a slight increase over the years, moving from 45% in 2013 to 47% in 2022. This trend coincides with a gradual increase in average rent prices. The average rent rose from $767 in 2013 to $763 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $847. The population of the zip code has remained relatively stable, with 26,209 residents in 2022, which may contribute to the steady demand for rental properties.
In 2023 and 2024, the average home prices in zip code 35020 experienced a slight decline. The average home price in 2023 was $63,774, down from $69,220 in 2022. This trend continued into 2024, with the average home price further decreasing to $61,925. Interestingly, this decline occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024.
Looking ahead, predictive models suggest that average home prices in zip code 35020 may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid increases seen between 2015 and 2022. Average rent prices are also expected to show a gradual upward trend, potentially reaching around $900 by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 35020 has demonstrated a relatively stable housing market with a slight shift towards renting in recent years. The significant increase in average home prices from 2015 to 2022, followed by a modest decline in 2023 and 2024, highlights the dynamic nature of the local real estate market. The area's resilience in maintaining steady homeownership rates, despite fluctuations in federal interest rates and housing prices, suggests a robust local economy and sustained demand for housing in this Bessemer neighborhood.
