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Zip Code 35078: Harpersville's Stable Homeownership Amid Rising Home Values
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
Harpersville, situated in zip code 35078 in Alabama, has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices in the area. The homeownership rate in Harpersville has shown a slight upward trend in recent years. In 2013, the percentage of owner-occupied homes was 82%, which increased to 86% by 2021, before settling at 83% in 2022. This overall increase in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $148,829, which steadily increased to $261,648 by 2022, representing a substantial 76% growth over this period.
The relationship between federal interest rates and homeownership rates in Harpersville appears to follow the general trend where lower interest rates encourage homeownership. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates in the area reached their peak at 85% in 2020 and 86% in 2021. This correlation suggests that favorable financing conditions likely contributed to increased homeownership during this period.
Conversely, the percentage of renters in Harpersville has fluctuated but generally decreased from 19% in 2015 to 17% in 2022. Despite this decline in the renter population, average rent prices have shown a consistent upward trajectory. In 2013, the average rent was $858, which increased to $1,008 by 2022, representing a 17.5% increase over this period. This trend suggests that while fewer people are renting, those who do are facing higher rental costs.
Looking at the most recent data, the average home price in Harpersville reached $270,366 in 2023 and further increased to $273,734 in 2024. This continued upward trend occurs despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing market dynamics in the area.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Harpersville will continue to rise, potentially reaching around $300,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. These projections assume a continuation of current economic conditions and local market factors.
In summary, Harpersville has experienced a general increase in homeownership rates accompanied by significant growth in average home prices. The rental market, while shrinking in terms of occupancy, has seen steady increases in average rent prices. The recent sharp rise in interest rates may influence future homeownership trends, potentially slowing the rate of increase in home prices or affecting the ability of potential buyers to enter the market.
