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Zip Code 35125: Resilient Housing Market with Rising Home Values and Ownership Rebound
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 35125, located in Pell City, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen fluctuations in its population and housing market, with interesting trends emerging in both ownership percentages and average home and rent prices. The homeownership rate in zip code 35125 has shown some variability over the years, with a general trend towards slight decline. In 2013, the homeownership rate stood at 68%, but by 2022, it had decreased to 66%. This change coincided with significant increases in average home prices. The average home price in 2013 was $121,865, which rose dramatically to $225,895 by 2022, representing an 85% increase over this period. This substantial rise in home prices may have contributed to the slight decrease in homeownership rates, as affordability became a growing concern for potential buyers.
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 0.40%), the homeownership rate remained relatively stable, hovering around 63-69%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, there was a slight downward pressure on homeownership rates. However, the relationship is not always straightforward, as other local economic factors also influence homeownership decisions.
The rental market in zip code 35125 has shown its own distinct trends. The percentage of renters increased from 32% in 2013 to 34% in 2022, inversely mirroring the slight decline in homeownership. Average rent prices have also seen a steady increase over this period. In 2013, the average rent was $662, which rose to $950 by 2022, a 43% increase. This rise in rent prices, while significant, was not as steep as the increase in home prices, potentially making renting a more attractive option for some residents.
Looking at the most recent data for 2023 and 2024, we see a slight correction in the housing market. The average home price in 2023 was $218,217, showing a 3.4% decrease from 2022. This trend continued into 2024, with the average home price further declining to $215,293. Interestingly, this occurred despite rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests that local market forces may be exerting a stronger influence on home prices than national interest rate trends in this particular zip code.
Applying predictive models to forecast 5-year trends, we can anticipate continued but more moderate growth in both average home prices and rent prices for zip code 35125. Home prices are expected to stabilize and potentially show modest increases, likely reaching around $230,000-$240,000 by 2029. Rent prices are projected to continue their upward trajectory, potentially reaching $1,100-$1,200 per month on average by 2029. These predictions take into account the recent market corrections and the potential for economic stabilization.
In summary, zip code 35125 has experienced significant changes in its housing market over the past decade. The area has seen substantial increases in both home and rent prices, with a slight shift towards renting. Recent data suggests a cooling in the housing market, which may lead to more stable growth in the coming years. The interplay between homeownership rates, housing prices, and economic factors continues to shape the residential landscape of this Pell City community.
