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Zip Code 35120: Rising Home Values and Shifting Ownership Patterns in Odenville, 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 35120, located in Odenville, Alabama, has experienced significant changes in its housing market over the past decade. This area has seen a gradual shift in homeownership rates, coupled with fluctuations in average home prices and rent costs. The overall trend shows a slight decrease in homeownership, while average home prices have steadily increased.
From 2013 to 2022, the homeownership rate in zip code 35120 decreased from 89% to 84%. During this same period, average home prices rose consistently, starting at $144,995 in 2013 and reaching $258,690 in 2022, representing a substantial 78.4% increase. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership remained stable at 89%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 84%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in zip code 35120 increased from 11% in 2013 to 16% in 2022. Interestingly, average rent prices showed a downward trend during this period, decreasing from $1,048 in 2013 to $852 in 2022, a 18.7% reduction. This decline in average rent prices, despite an increase in the renter population, could be attributed to various factors such as an increase in housing supply or local economic conditions. The population growth from 14,515 in 2013 to 17,706 in 2022 may have also influenced these housing market dynamics.
In 2023 and 2024, the housing market in zip code 35120 showed signs of stabilization. The average home price in 2023 was $262,302, a slight increase from 2022. However, in 2024, there was a minor decrease to $256,965. This recent trend coincides with a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting home buying activity.
Looking ahead, based on historical trends and current market conditions, we can expect the average home prices in zip code 35120 to continue a moderate upward trajectory over the next five years, albeit at a slower pace than observed in the past decade. The recent stabilization in prices may indicate a more sustainable growth pattern. Average rent prices, which have been declining, might start to level off or show slight increases as the renter population continues to grow.
In summary, zip code 35120 has witnessed a gradual shift towards more renters, with homeownership rates decreasing from 89% to 84% between 2013 and 2022. Despite this trend, average home prices have risen significantly, while average rent prices have decreased. The recent stabilization in home prices and the sharp increase in interest rates suggest a potential cooling of the rapid price growth seen in previous years. These trends highlight the dynamic nature of the local housing market and its responsiveness to broader economic factors.
