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Zip Code 35117: Rising Home Values and High Ownership Rates in Mount Olive, 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
Mount Olive, located in zip code 35117 in Alabama, has experienced significant demographic and housing market shifts over the past decade. This area, spanning 25.86 square miles, has seen fluctuations in its population and homeownership rates, alongside changes in average home prices and rent values. The overall trend shows a strong preference for homeownership, with a generally increasing trend in average home prices.
The homeownership rate in Mount Olive has shown a notable increase over the years. In 2013, 86% of residents were homeowners, and this percentage rose to 90% by 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $146,063, which steadily climbed to $241,837 by 2022, representing a 65.6% increase over nine years. This parallel growth suggests a strong correlation between rising home values and the desire for homeownership in the area.
Federal interest rates have played a significant role in shaping homeownership trends in Mount Olive. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. This low-interest environment likely contributed to the increase in homeownership, as it made mortgage financing more accessible and affordable for potential buyers. The homeownership rate peaked at 91% in 2021 when interest rates were at a mere 0.08%, further illustrating this relationship.
Conversely, the rental market in Mount Olive has shown a general decline in both the percentage of renters and average rent prices. The proportion of renters decreased from 14% in 2013 to 10% in 2022. Interestingly, average rent prices also saw a significant drop, falling from $1,088 in 2013 to $694 in 2022, a 36.2% decrease. This decline in both renter percentage and rent prices could be attributed to the strong preference for homeownership in the area and the relatively stable population, which stood at 5,635 in 2022.
In 2023 and 2024, the housing market in Mount Olive continued to evolve. The average home price reached $250,670 in 2023 and further increased to $253,110 in 2024, showing a continued upward trend. However, this growth has slowed compared to previous years, possibly due to the sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in Mount Olive will continue to rise, albeit at a slower pace due to higher interest rates. A five-year forecast suggests that average home prices could reach approximately $275,000 to $285,000 by 2029. Rent prices, which have been declining, may stabilize or see a slight increase, potentially reaching around $750 to $800 per month in the next five years, as the rental market adjusts to the changing dynamics of homeownership and housing costs.
In summary, Mount Olive has demonstrated a strong trend towards homeownership, with rising average home prices and declining rental rates. The interplay between federal interest rates, homeownership percentages, and housing prices has been evident, with low-interest periods correlating with increased homeownership. As the area moves forward, it will likely continue to see growth in home values, albeit at a more moderate pace, while the rental market may experience some stabilization or modest growth in response to evolving market conditions.
