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Zip Code 35058: Rising Home Values and Stable Ownership in Cullman, 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 35058, located in Cullman, Alabama, has shown interesting trends in homeownership and housing prices over the past decade. This area has experienced fluctuations in population density and significant changes in both average home prices and average rent prices, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 35058 has remained relatively stable, with minor fluctuations between 2013 and 2022. In 2013, the homeownership rate was 80%, and by 2022, it had slightly decreased to 77%. During this period, average home prices saw a substantial increase. In 2013, the average home price was $124,804, and by 2022, it had risen to $233,057, representing an impressive 86.7% increase over nine years. This trend suggests that despite rising home prices, residents in this area have maintained a strong preference for homeownership.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate in zip code 35058 remained high, reaching 82% in 2016. As interest rates began to rise from 2017 onwards, there was a slight decline in homeownership, dropping to 77% by 2022 when the federal interest rate reached 1.68%. This inverse relationship between interest rates and homeownership rates aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The renter population in zip code 35058 has shown some variability over the years. In 2013, the renter-occupied rate was 19%, which increased to 23% by 2022. Correspondingly, average rent prices have also risen. In 2013, the average rent was $634, and by 2022, it had increased to $787, representing a 24.1% increase. The rise in both renter percentage and average rent prices could be attributed to factors such as population growth (from 10,421 in 2013 to 11,386 in 2022) and possibly an influx of new residents preferring to rent.
In 2023 and 2024, the average home prices in zip code 35058 continued to rise, reaching $237,601 in 2023 and $238,375 in 2024. This represents a modest increase of 2.3% from 2022 to 2024. Notably, federal interest rates have also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on the historical data and current trends, we can forecast potential 5-year trends for average home and rent prices in zip code 35058. Average home prices are likely to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $260,000 to $280,000 by 2029. Average rent prices are also expected to increase, potentially reaching $900 to $950 per month in the next five years, assuming the current growth rate continues.
In summary, zip code 35058 has maintained a high homeownership rate despite significant increases in average home prices. The area has experienced moderate growth in its renter population, accompanied by rising average rent prices. The relationship between federal interest rates and homeownership rates is evident, with recent increases in interest rates potentially influencing future housing market dynamics. As the area continues to grow, these trends in homeownership, home prices, and rent prices will likely shape the local real estate landscape in the coming years.
