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Zip Code 35118: High Homeownership Rates and Rising Home Values in Sylvan Springs, 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 35118, located in Sylvan Springs, Alabama, presents an intriguing landscape of homeownership and housing market trends. This area has experienced fluctuations in its ownership percentage, average home prices, and average rent prices over the past decade. The community has maintained a relatively high rate of homeownership, typically above 78%, while witnessing significant growth in average home values and moderate changes in average rent prices.
The homeownership rate in zip code 35118 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the ownership percentage stood at 83%, gradually decreasing to 78% by 2016. However, it rebounded to 81% in 2022. Interestingly, this trend coincided with a substantial increase in average home prices. From 2013 to 2022, average home prices rose from $81,216 to $141,321, representing a remarkable 74% increase. This suggests that despite rising home values, the area has maintained its appeal to homeowners.
Federal interest rates have played a significant role in homeownership trends. In 2013, when interest rates were at a low 0.11%, the area saw its highest homeownership rate of 83%. As interest rates gradually increased to 1.83% by 2018, homeownership dipped slightly but remained strong at 81%. The relationship between interest rates and homeownership in this zip code appears to be less pronounced than in many other areas, possibly due to other local factors maintaining the area's attractiveness to homebuyers.
Renter percentages in zip code 35118 have shown minor fluctuations, ranging from 17% in 2013 to 22% in 2016, before settling at 19% in 2022. Average rent prices have exhibited more volatility. Starting at $833 in 2013, they peaked at $937 in 2018, then unexpectedly dropped to $739 in 2019, before rising again to $788 in 2022. This represents a modest overall decrease of 5.4% from 2013 to 2022. The population growth from 3,250 in 2013 to 3,441 in 2022 may have contributed to the overall stability in rental demand despite these price fluctuations.
In 2023 and 2024, the housing market in zip code 35118 continued to evolve. Average home prices reached $145,462 in 2023, showing a further increase from 2022. However, in 2024, there was a slight decline to $144,096. This coincided with a significant rise in federal interest rates, which jumped to 5.02% in 2023 and further to 5.33% in 2024, potentially impacting home affordability and prices.
Looking ahead, predictive models suggest a continued upward trend in average home prices for zip code 35118 over the next five years, albeit at a more moderate pace than seen in recent years. Average home prices could reach approximately $160,000 by 2029. For average rent prices, a gradual increase is projected, potentially reaching around $950 per month by 2029, assuming steady population growth and economic stability in the area.
In summary, zip code 35118 has demonstrated resilience in maintaining high homeownership rates despite significant increases in average home prices. The area has shown an ability to weather changes in federal interest rates while sustaining a strong homeowner base. Rental markets have been more volatile, with fluctuating average rent prices, but have generally kept pace with population growth. The recent slowdown in home price appreciation and the rise in interest rates may signal a shift towards a more balanced housing market in the coming years. As we look to the future, moderate growth in both home values and rental prices is anticipated, reflecting the area's continued appeal and economic stability.
