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Zip Code 35124: A Decade of Home Value Growth and Stable Ownership in Pelham, 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 35124, located in Pelham, Alabama, has experienced dynamic shifts in homeownership, average home prices, and average rent prices over the past decade. This area has maintained a relatively high rate of homeownership while navigating fluctuations in both the housing and rental markets.
The homeownership rate in zip code 35124 has remained consistently high, though it has experienced a slight decline from 82% in 2013 to 81% in 2022. During this same period, average home prices have shown a significant upward trend. In 2013, the average home price was $186,534, which steadily increased to $326,570 by 2022, representing a substantial 75% increase over nine years. This trend suggests that despite rising home prices, the area has managed to maintain a strong base of homeowners.
Federal interest rates have played a role in homeownership trends in the area. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 81-82%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 79% in 2018. However, the rate rebounded to 82% in 2019, possibly due to other local economic factors offsetting the impact of rising interest rates.
The rental market in zip code 35124 has shown interesting trends as well. The percentage of renters increased slightly from 18% in 2013 to 19% in 2022. Average rent prices have fluctuated over this period, starting at $1,225 in 2013, peaking at $1,344 in 2021, and then decreasing slightly to $1,245 in 2022. The population of the area has remained relatively stable, with only minor fluctuations, which suggests that changes in rent prices may be more influenced by local economic conditions and housing market dynamics rather than significant population shifts.
In 2023 and 2024, the average home prices in zip code 35124 continued to show growth, albeit at a slower pace. The average home price reached $331,450 in 2023 and $331,499 in 2024, indicating a stabilization in the market. This trend coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the slowing of home price appreciation in the area.
Looking ahead, based on the historical trends and current market conditions, we can project some potential outcomes for the next five years. Average home prices in zip code 35124 are likely to continue increasing, but at a more moderate pace compared to the rapid growth seen in previous years. We might expect average home prices to reach around $360,000 to $380,000 by 2029. Average rent prices could also see a modest increase, potentially reaching $1,400 to $1,500 per month by 2029, assuming continued economic stability and moderate population growth in the area.
In summary, zip code 35124 has demonstrated resilience in its housing market, maintaining high homeownership rates despite significant increases in average home prices. The rental market has remained relatively stable, with only slight increases in the proportion of renters and moderate fluctuations in average rent prices. The recent stabilization of home prices, coupled with rising interest rates, suggests a potential shift towards a more balanced market in the coming years. These trends indicate a robust and adaptable housing market in this Alabama community.
