Zip Code 35111: Rising Home Values and Ownership Rates in McCalla, Alabama
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
McCalla, located in zip code 35111 in Alabama, has experienced significant changes in its housing market over the past decade. This area has seen a general trend of increasing homeownership rates alongside rising average home prices, with some fluctuations in the rental market.
The homeownership rate in McCalla has shown a strong upward trend, increasing from 83% in 2018 to 91% in 2022. This substantial rise in homeownership coincides with a significant increase in average home prices. In 2018, the average home price was $201,757, which rose steadily to $290,131 by 2022, representing a 43.8% increase over this four-year period. This trend suggests a growing preference for homeownership in the area, possibly driven by factors such as local economic growth and community development.
Federal interest rates have played a role in shaping homeownership trends in McCalla. The period from 2018 to 2021 saw relatively low interest rates, ranging from 1.83% to 0.08%. These low rates likely contributed to the increase in homeownership, as they made mortgage financing more affordable for potential buyers. The sharp rise in interest rates to 1.68% in 2022 and 5.02% in 2023 may have influenced the continued increase in homeownership, as some residents may have rushed to purchase homes before rates climbed further.
The rental market in McCalla has shown some volatility. The percentage of renters decreased from 17% in 2018 to 9% in 2022. Despite this decrease in the renter population, average rent prices have generally increased. In 2018, the average rent was $1,158, which rose to $1,338 in 2021 before decreasing slightly to $1,130 in 2022. This fluctuation in rent prices, coupled with the decreasing renter population, suggests a complex rental market influenced by factors such as housing supply, local economic conditions, and the strong trend towards homeownership.
Looking at the most recent data, the average home price in McCalla reached $297,534 in 2023, showing continued growth from previous years. However, in 2024, there was a slight decrease to $295,636, potentially indicating a stabilization in the housing market. This slight downturn coincides with the federal interest rate reaching 5.33% in 2024, which may have influenced buyer behavior and market dynamics.
Applying predictive models to forecast 5-year trends, we can expect the average home prices in McCalla to continue on a moderate upward trajectory, albeit at a slower pace than observed in recent years. The strong homeownership trend is likely to persist, potentially reaching or exceeding 93% by 2029. Average rent prices may stabilize or see modest increases, influenced by the limited rental market in the area.
In summary, McCalla has demonstrated a robust trend towards homeownership, with significant increases in both the percentage of homeowners and average home prices. The rental market has contracted but remains an important component of the local housing ecosystem. The interplay between federal interest rates, local economic factors, and housing preferences will continue to shape the real estate landscape in this Alabama community.
