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Zip Code 35022: Rising Home Values and High Ownership Rates 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 35022, located in Bessemer, Alabama, has experienced significant changes in its housing market over the past decade. This area, spanning 64.0 square miles, has seen fluctuations in homeownership rates and housing prices that reflect both local and national economic trends.
The homeownership rate in zip code 35022 has shown resilience over the years, with a slight increase from 77% in 2020 to 82% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $156,749, which steadily increased to $263,848 by 2022, representing a 68% increase over nine years. This positive correlation between homeownership rates and average home prices suggests a growing demand for housing in the area, potentially driven by factors such as local economic growth or improved community amenities.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 35022. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates remained stable at 79%, likely due to the favorable borrowing conditions. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a slight increase in homeownership to 82%. This counterintuitive trend might be attributed to local factors outweighing the impact of rising interest rates, such as job growth or improved local infrastructure.
Renter percentages in zip code 35022 have remained relatively stable, with a slight decrease from 23% in 2020 to 18% in 2022. Interestingly, average rent prices have shown more volatility. In 2013, the average rent was $1,123, which increased to $1,313 by 2020, representing a 17% rise. However, by 2022, the average rent slightly decreased to $1,325. This trend suggests that while the rental market has grown over the long term, it has experienced some recent stabilization, possibly due to increased housing supply or shifts in local economic conditions.
In 2023 and 2024, the housing market in zip code 35022 continued to evolve. The average home price reached $273,207 in 2023 and further increased to $274,467 in 2024, showing a continued upward trend. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from previous years. Despite these higher interest rates, the housing market in this area appears to remain robust, with prices continuing to appreciate, albeit at a slower pace.
Looking ahead, predictive models suggest that average home prices in zip code 35022 may continue to rise over the next five years, but at a more moderate rate compared to the rapid growth seen in recent years. We might expect average home prices to reach around $300,000 by 2029. Average rent prices are also projected to increase, potentially reaching $1,500 by 2029, assuming current economic conditions and local market factors remain relatively stable.
In summary, zip code 35022 has demonstrated a strong housing market characterized by increasing homeownership rates and rising average home prices. The area has shown resilience in the face of changing interest rates, with homeownership rates actually improving during periods of rate increases. The rental market, while experiencing some fluctuations, has also seen overall growth. These trends, combined with the continued price appreciation in 2023 and 2024, suggest a robust and desirable housing market in this Bessemer, Alabama zip code.
