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Zip Code 35068: Rising Home Values and Ownership in Fultondale, 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 35068, located in Fultondale, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, covering 10.52 square miles, has seen fluctuations in its population and housing market dynamics, reflecting broader economic trends and local developments.
The homeownership rate in zip code 35068 has shown resilience, with a general upward trend from 2013 to 2022. In 2013, the homeownership rate stood at 65%, and by 2022, it had increased to 69%. This growth in homeownership coincided with a steady rise in average home prices. In 2013, the average home price was $134,264, and it consistently increased year-over-year, reaching $227,244 by 2022. This represents a substantial 69.3% increase in average home prices over a nine-year period.
The relationship between federal interest rates and homeownership rates in this zip code reveals an interesting pattern. Despite historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable, hovering around 63-65%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in the area actually increased to 69%. This suggests that local factors, such as employment opportunities or housing availability, may have played a more significant role in homeownership decisions than national interest rates in this particular zip code.
Renter percentages in zip code 35068 have fluctuated over the years, with a slight overall decrease from 35% in 2013 to 31% in 2022. Interestingly, average rent prices have shown a general upward trend during this period. In 2013, the average rent was $977, and it increased to $1,013 by 2022, representing a 3.7% increase. The population of the zip code grew from 6,485 in 2013 to 6,727 in 2022, which may have contributed to the upward pressure on rent prices despite the slight decrease in the percentage of renters.
In 2023 and 2024, the housing market in zip code 35068 continued to evolve. The average home price reached $234,461 in 2023 and further increased to $235,522 in 2024, showing a continued upward trend. This occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, yet the local housing market has maintained its growth trajectory.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue over the next five years, albeit at a potentially slower pace. Average home prices are projected to reach approximately $250,000 by 2029, while average rent prices could approach $1,100 per month. These predictions are based on historical trends and assume relatively stable economic conditions.
In summary, zip code 35068 has demonstrated a robust housing market with increasing homeownership rates and rising property values over the past decade. The area has shown resilience in the face of changing interest rates, with local factors appearing to exert a strong influence on housing market dynamics. The continued growth in both home prices and rent prices, despite fluctuations in the renter population, suggests a strong demand for housing in this area. As the market continues to evolve, it will be important to monitor how these trends impact affordability and housing accessibility for residents of Fultondale.
