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Zip Code 35042: Rising Home Values and Stable Ownership in Centreville, 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 35042, located in Centreville, Alabama, showcases an interesting dynamic between homeownership and rental trends over the past decade. This area has experienced fluctuations in both population and housing markets, with a general trend towards increased homeownership and rising average home prices.
The homeownership rate in zip code 35042 has shown a notable increase over the years. In 2013, the homeownership rate was 72%, and it reached its peak at 79% in 2020. This upward trend in homeownership coincided with a significant increase in average home prices. The average home price in 2011 was $112,537, and it steadily climbed to $185,301 by 2022, representing a substantial 64.7% increase over this period. This correlation suggests that despite rising home prices, residents in this area have been increasingly able and willing to purchase homes.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 35042. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the increase in homeownership, as they made mortgage financing more affordable for potential buyers. The sharp rise in homeownership from 72% in 2013 to 79% in 2020 aligns with this period of low interest rates, demonstrating the strong influence of federal monetary policy on local housing markets.
Renter percentages in zip code 35042 have fluctuated inversely to homeownership rates. In 2013, the renter-occupied rate was 25%, which increased slightly to 29% in 2016 before declining to 21% in 2020. Interestingly, average rent prices have shown a general upward trend despite these fluctuations. The average rent price increased from $526 in 2013 to $638 in 2022, representing a 21.3% increase. This trend suggests that despite rising rent prices, the area has maintained a relatively stable renter population, possibly due to factors such as job opportunities or lifestyle preferences.
In 2023 and 2024, the housing market in zip code 35042 has shown some interesting developments. The average home price reached $188,111 in 2023, the highest point in the dataset. However, there was a slight decrease to $182,412 in 2024. This recent decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on home prices in the area.
Looking ahead, predictive models suggest that average home prices in zip code 35042 may continue to experience moderate growth over the next five years, albeit at a slower pace than seen in recent years due to higher interest rates. Rent prices are also expected to continue their upward trajectory, potentially reaching an average of around $700 by 2029. However, these predictions are subject to various economic factors and local market conditions.
In summary, zip code 35042 has demonstrated a strong trend towards homeownership over the past decade, with average home prices showing substantial growth. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with low interest rates correlating with increased homeownership. While rent prices have also increased, the area has maintained a relatively stable renter population. The recent cooling in home prices, coupled with rising interest rates, suggests a potential shift in the housing market dynamics for this Alabama community in the coming years.
