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Zip Code 35091: Kimberly, Alabama's Resilient Housing Market and High Homeownership Rates
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 35091, located in Kimberly, Alabama, presents an interesting case study in homeownership and housing market trends. This area has seen significant fluctuations in both ownership rates and housing prices over the past decade, with a general trend towards increased homeownership and rising property values. The homeownership rate in zip code 35091 has shown a notable increase over the years, rising from 84% in 2016 to an impressive 91% in 2022. This upward trend in homeownership coincides with a substantial increase in average home prices. In 2016, the average home price in the area was $193,320, which steadily climbed to $297,106 by 2022, representing a 53.7% increase over six years. This correlation suggests that despite rising home prices, residents in this zip code have been increasingly able and willing to invest in homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 35091. The period from 2016 to 2020 saw relatively low interest rates, ranging from 0.4% to 2.16%, which likely contributed to the increase in homeownership from 84% to 91% during this time. Lower interest rates generally make mortgages more affordable, encouraging more people to buy homes. The sharp increase in interest rates to 5.02% in 2023 and 5.33% in 2024 may impact future homeownership rates, although current data doesn't yet reflect this potential shift.
While homeownership has been on the rise, the renter population in zip code 35091 has decreased correspondingly. The percentage of renters dropped from 16% in 2016 to 8% in 2022. Interestingly, despite this decrease in renter population, average rent prices have shown an overall upward trend. In 2016, the average rent was $889, which increased to $880 by 2022, with fluctuations in between, peaking at $949 in 2021. This trend suggests that even as fewer people rent in the area, those who do are paying higher prices, possibly due to increased demand for a limited supply of rental properties.
Looking at the most recent data, average home prices in zip code 35091 reached $307,663 in 2023, showing continued growth from previous years. However, in 2024, there was a slight decrease to $307,155, possibly influenced by the higher interest rates of 5.33% in 2024. This slight dip could indicate a potential cooling of the housing market in response to increased borrowing costs.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach around $330,000 to $350,000 by 2029. Rent prices are also likely to continue their upward trajectory, potentially reaching an average of $950 to $1,000 per month in the same timeframe.
In summary, zip code 35091 has experienced a significant increase in homeownership rates and average home prices over the past decade. The area has seen a corresponding decrease in the renter population, although average rent prices have generally increased. Recent data shows a slight cooling in the housing market, possibly due to rising interest rates. Looking forward, we can expect continued growth in both home prices and rent, though potentially at a more moderate pace than in recent years.
