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Zip Code 35085: Rising Home Values and Ownership Trends in Jemison, 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 35085, located in Jemison, Alabama, presents an interesting case study of homeownership and housing market trends. Over the past decade, this area has experienced fluctuations in ownership rates and housing prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 35085 has remained relatively stable, with a slight increase from 76% in 2016 to 80% in 2022. This trend coincides with a significant rise in average home prices, which grew from $128,089 in 2016 to $208,765 in 2022, representing a 63% increase over six years. The relationship between homeownership rates and average home prices suggests that despite rising costs, residents in this area have maintained a strong preference for owning their homes.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 35085. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the area saw a slight uptick in homeownership from 78% to 79%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in zip code 35085 have shown a modest decline, from 24% in 2017 to 20% in 2022. Interestingly, average rent prices have experienced significant volatility during this period. The average rent peaked at $789 in 2013, then fluctuated before dropping to $636 in 2021 and slightly rebounding to $678 in 2022. This trend suggests that despite decreasing rent prices, the proportion of renters has not increased, possibly due to strong local preferences for homeownership or other economic factors affecting the rental market.
Moving to more recent data, the average home price in zip code 35085 continued its upward trajectory, reaching $214,865 in 2023 and $215,149 in 2024. This represents a modest increase of 3% from 2022 to 2023, and a marginal 0.1% growth from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may explain the slower pace of home price appreciation in these years.
Looking ahead, predictive models suggest that average home prices in zip code 35085 may continue to rise over the next five years, but at a more moderate pace compared to the rapid growth seen in the early 2020s. Average rent prices are expected to stabilize and potentially increase slightly, reflecting broader economic conditions and local housing demand.
In summary, zip code 35085 has demonstrated resilience in homeownership rates despite rising home prices. The area has seen a significant appreciation in property values, particularly from 2016 to 2022. While renter percentages have decreased slightly, rent prices have shown volatility. Recent years have seen a slowdown in home price growth, likely influenced by rising interest rates. These trends underscore the dynamic nature of the local housing market and its responsiveness to broader economic factors.
