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Zip Code 35116: Rising Home Values and Strong Ownership Rates in Morris, 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 35116, located in Morris, Alabama, has experienced significant changes in homeownership rates and property values over the past decade. This area has shown a strong preference for homeownership, with rates consistently above 80% throughout the observed period. The trends in average home prices and average rent have fluctuated, reflecting the dynamic nature of the local real estate market.
The homeownership rate in zip code 35116 has shown an upward trend, increasing from 84% in 2019 to 90% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2019, the average home price was $181,379, which rose dramatically to $248,560 by 2022, representing a 37% increase over just three years. This trend suggests that despite rising home prices, residents in this area have maintained a strong preference for homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 35116. The period from 2019 to 2021 saw historically low interest rates, dropping from 2.16% in 2019 to a mere 0.08% in 2021. This low-interest environment likely contributed to the increase in homeownership, as it made mortgage financing more affordable for potential buyers. The homeownership rate climbed from 84% in 2019 to 89% in 2021, aligning with this period of low interest rates.
The rental market in zip code 35116 has shown inverse trends to homeownership. As homeownership rates increased, the percentage of renters decreased from 16% in 2019 to 10% in 2022. Interestingly, average rent prices fluctuated during this period. In 2019, the average rent was $853, which increased to $975 in 2021, before dropping to $876 in 2022. These fluctuations in rent prices, coupled with the decreasing percentage of renters, suggest a shifting dynamic in the local rental market, possibly influenced by the strong trend towards homeownership.
In 2023 and 2024, the real estate market in zip code 35116 continued to evolve. The average home price reached $260,073 in 2023 and slightly increased to $260,529 in 2024, showing a stabilization in home values after the rapid growth observed in previous years. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. This sharp increase in interest rates may impact future homeownership trends and property values in the area.
Looking ahead, predictive models suggest that average home prices in zip code 35116 may continue to rise moderately over the next five years, albeit at a slower pace than observed in recent years. The stabilization seen in 2023 and 2024 might indicate a more sustainable growth pattern. Average rent prices are expected to follow a similar trend, with modest increases projected. However, these predictions should be viewed in the context of broader economic factors, including interest rates and local economic conditions.
In summary, zip code 35116 has demonstrated a strong and growing preference for homeownership, with rates reaching 90% by 2022. This trend has occurred alongside significant increases in average home prices, particularly between 2019 and 2022. The rental market has contracted in terms of occupancy but has shown fluctuations in average rent prices. The recent stabilization of home prices and the sharp rise in interest rates in 2023 and 2024 may signal a new phase in the local real estate market, potentially influencing future homeownership rates and property values.
