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Zip Code 35115: Rising Home Values and Ownership Rates in Pea Ridge, 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 35115, located in Pea Ridge, Alabama, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 35115 has shown resilience over the years, with a slight upward trend. In 2013, the homeownership rate stood at 70%, and by 2022, it had increased to 75%. This 5% increase in homeownership occurred alongside a substantial rise in average home prices. In 2013, the average home price was $130,653, which steadily climbed to $232,210 by 2022, representing a remarkable 77.7% increase over nine years. This trend suggests that despite rising home prices, local residents have maintained a strong preference for homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 35115. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 70-72%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the area still managed to achieve its highest homeownership rate of 75% in 2022. This suggests that other local factors, such as job market stability or housing supply, may have counteracted the potential negative impact of rising interest rates on homeownership.
Renter percentages in zip code 35115 have generally mirrored the inverse of homeownership rates, decreasing slightly over time. In 2013, renters made up 30% of the population, which decreased to 25% by 2022. Interestingly, average rent prices have shown moderate fluctuations during this period. The average rent in 2013 was $855, which dipped to $830 in 2016 before rising again to $885 in 2022, representing a modest 3.5% increase over nine years. This relatively stable rental market, combined with the area's growing population (from 15,239 in 2013 to 16,810 in 2022), suggests a balanced demand for rental properties despite the increasing preference for homeownership.
Looking at the most recent data, average home prices in zip code 35115 continued to rise in 2023 and 2024, reaching $233,480 and $234,752 respectively. This represents a slight slowdown in price growth compared to previous years. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and home price appreciation in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 35115 will continue to rise, albeit at a more moderate pace. The average home price could potentially reach around $260,000 to $270,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially increasing to approximately $950 to $1,000 per month within the same timeframe.
In summary, zip code 35115 has demonstrated a strong housing market with increasing homeownership rates and substantial appreciation in average home values. The area has shown resilience in maintaining high homeownership levels despite rising home prices and fluctuating interest rates. The rental market has remained relatively stable, with modest increases in average rent prices. As the area continues to grow, balancing homeownership opportunities with affordable rental options will be crucial for maintaining a diverse and thriving community.
