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Zip Code 35023: Rising Home Values and Stable Ownership in Hueytown's Automotive Hub
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 35023, located in Hueytown, Alabama, presents an intriguing landscape of homeownership and housing market dynamics. This area has experienced notable shifts in ownership percentages, average home prices, and average rent prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 35023 has shown resilience, with slight fluctuations over the years. In 2013, the area boasted a 78% homeownership rate, which dipped to 74% by 2019 before rebounding to 78% in 2022. This trend aligns interestingly with the trajectory of average home prices in the area. In 2013, the average home price was $95,097, which steadily increased to $169,440 by 2022, representing a significant 78% growth over this period.
The relationship between federal interest rates and homeownership rates in this zip code reveals some interesting patterns. As interest rates remained historically low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates experienced a slight decline from 78% to 75%. However, as interest rates began to rise more substantially from 2017 onwards, reaching 1.68% by 2022, homeownership rates surprisingly rebounded to 78%. This suggests that local factors may have played a more significant role in homeownership decisions than national interest rate trends in this particular area.
Renter percentages and average rent prices in zip code 35023 have shown their own distinct trends. The percentage of renters increased from 22% in 2013 to 26% in 2019, before decreasing back to 22% in 2022. Interestingly, average rent prices have generally trended upwards during this period, rising from $900 in 2013 to $1,004 in 2022, with some fluctuations in between. The peak average rent of $1,191 was observed in 2021, coinciding with a slight decrease in the renter population, possibly indicating a shift towards homeownership as rent prices became less affordable.
Looking at the most recent data, the average home price in zip code 35023 reached $174,480 in 2023, showing continued appreciation. However, there was a slight decrease to $173,672 in 2024, potentially signaling a stabilization in the market. This corresponds with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024, likely impacting homebuying affordability and market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 35023 will continue to appreciate, albeit at a more moderate pace. The recent stabilization observed in 2024 suggests that the rapid growth seen in previous years may slow down. Average rent prices are expected to follow a similar trajectory, with continued increases but potentially at a more gradual rate. These predictions are based on historical trends and current market conditions.
In summary, zip code 35023 has demonstrated a robust housing market with resilient homeownership rates despite fluctuations in interest rates and home prices. The area has seen substantial appreciation in average home values and a general upward trend in average rent prices. The interplay between homeownership rates, rental percentages, and pricing trends reflects a dynamic market responding to both local and national economic factors. As we move forward, the market in this zip code appears poised for continued growth, albeit potentially at a more moderate pace than seen in recent years.
