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Zip Code 35072: Rising Home Values and High Ownership Rates in Rural 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 35072, located in Hollins, Alabama, presents an intriguing landscape of homeownership and housing market dynamics. This rural area has experienced fluctuations in its ownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 35072 has remained relatively high, fluctuating between 78% and 84% from 2013 to 2022. This stability in homeownership is particularly noteworthy given the changes in average home prices during the same period. Average home prices in the area have shown a consistent upward trend, increasing from $82,000 in 2010 to $133,548 in 2022, representing a significant 62.9% increase over 12 years.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. Despite the historically low interest rates from 2010 to 2016, which ranged from 0.09% to 0.4%, homeownership rates remained relatively stable, hovering around 80%. This suggests that other local factors may have played a more significant role in homeownership decisions than national interest rates alone.
Renter percentages in zip code 35072 have shown some variability, ranging from 16% to 22% between 2013 and 2022. Interestingly, average rent prices have increased substantially during this period, rising from $503 in 2013 to $596 in 2022, a 18.5% increase. This rise in rent prices occurred despite a decline in population from 4,154 in 2013 to 3,515 in 2022, indicating that factors other than population growth were driving rent increases.
In 2023 and 2024, the housing market in zip code 35072 experienced a slight downturn. Average home prices decreased from $133,548 in 2022 to $130,394 in 2023, and further to $127,311 in 2024. This decline coincided with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market in this area.
Looking ahead, predictive models suggest that average home prices in zip code 35072 may continue to face downward pressure in the short term due to high interest rates. However, given the area's history of price appreciation, a gradual recovery and modest growth can be expected over the next five years, potentially reaching around $140,000 by 2029. Average rent prices are projected to continue their upward trend, albeit at a slower pace, potentially reaching approximately $650 by 2029.
In summary, zip code 35072 has demonstrated resilience in homeownership rates despite significant increases in home prices over the past decade. The recent cooling of the housing market, influenced by rising interest rates, presents a new dynamic that may temporarily slow price growth. However, the area's consistent long-term appreciation suggests a positive outlook for homeowners and potential investors in the coming years.
