Loading Content...
Zip Code 35073: Average Home Values and Ownership Trends in Graysville, Alabama
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 35073, located in Graysville, Alabama, presents an intriguing case study of housing dynamics in a small urban area. This zip code, covering 29.91 square miles, has experienced fluctuating trends in homeownership rates and housing prices over the past decade. The overall trajectory shows a gradual decline in homeownership, coupled with a significant increase in average home prices and varying rent costs.
The homeownership rate in zip code 35073 has seen a notable decline from 2013 to 2022. In 2013, 80% of residents were homeowners, but by 2022, this figure had dropped to 70%. Interestingly, this decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $45,526, which more than doubled to $102,445 by 2022. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 35073. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 80% to 83%. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline more noticeably, dropping to 70% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 35073 has grown as homeownership has declined. In 2013, only 20% of residents were renters, but this increased to 30% by 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $842, which peaked at $983 in 2018 before declining to $766 in 2022. This fluctuation in rent prices, coupled with the increasing renter population, suggests a complex rental market influenced by various factors, including housing availability and local economic conditions.
Looking at the most recent data, the average home price in zip code 35073 for 2023 was $99,995, showing a slight decrease from 2022. This trend continued into 2024, with the average home price further declining to $99,140. Concurrently, federal interest rates have risen dramatically, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with the slight cooling of home prices, may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 35073 may continue to experience moderate growth, albeit at a slower pace than the rapid increases seen in recent years. The current high interest rates could potentially dampen demand, leading to a more stabilized housing market. Rent prices are expected to show modest increases, reflecting the growing renter population and overall housing market conditions.
In summary, zip code 35073 has witnessed a significant shift in its housing landscape over the past decade. The decline in homeownership rates, coupled with rising home prices and fluctuating rent costs, points to changing affordability dynamics in the area. The recent cooling of home prices and high interest rates suggest a potential market adjustment phase. These trends highlight the evolving nature of housing in Graysville, Alabama, and underscore the importance of monitoring these indicators for future housing market developments.
