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Zip Code 35126: Rising Home Values and Strong Ownership Trends in Pinson, 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 35126, located in Pinson, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has maintained a consistently high rate of owner-occupied housing, with recent trends showing an increase in homeownership and fluctuations in average home and rent prices.
The ownership percentage in zip code 35126 has shown a generally upward trend, rising from 83% in 2018 to 88% in 2022. This increase in homeownership coincides with a significant rise in average home prices. In 2018, the average home price was $152,589, which steadily increased to $224,703 by 2022, representing a 47% increase over four years. This trend suggests a strong correlation between rising home values and increased homeownership in the area.
Federal interest rates have played a crucial role in homeownership trends. From 2018 to 2020, interest rates decreased from 1.83% to 0.38%, which likely contributed to the rise in homeownership from 83% to 85% during this period. The low interest rates made mortgages more affordable, encouraging more residents to purchase homes. As interest rates began to rise in 2022 to 1.68%, homeownership continued to increase to 88%, possibly due to residents locking in purchases before further rate increases.
Renter percentages in zip code 35126 have inversely mirrored the homeownership trend, decreasing from 17% in 2018 to 12% in 2022. Interestingly, average rent prices have shown volatility during this period. In 2018, the average rent was $1,013, which decreased to $893 in 2019, then rose to $979 in 2021, before settling at $925 in 2022. This fluctuation in rent prices, coupled with the decreasing percentage of renters, suggests that rising home values may be pushing some renters towards homeownership, particularly when interest rates were favorable.
In 2023 and 2024, the housing market in zip code 35126 continued to evolve. The average home price reached $230,144 in 2023, showing a slight increase from 2022. However, in 2024, there was a minor decrease to $228,664. This slight dip coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be tempering home price growth and potentially affecting affordability for new buyers.
Looking ahead, based on the historical trends and current market conditions, we can expect the following 5-year forecast for zip code 35126: Average home prices are likely to continue a moderate upward trajectory, albeit at a slower pace than seen in recent years. We might expect prices to reach around $250,000 to $260,000 by 2029. Average rent prices may stabilize or show slight increases, potentially reaching $1,000 to $1,100 per month by 2029, as the rental market adjusts to changes in homeownership rates and overall housing demand. Homeownership rates might plateau or slightly decrease if interest rates remain high, potentially settling around 85-86% by 2029.
In summary, zip code 35126 has demonstrated a strong trend towards homeownership, with rising average home prices and fluctuating rent prices. The interplay between federal interest rates, home values, and rental market dynamics has shaped these trends. While homeownership has increased significantly, future growth may be moderated by higher interest rates and stabilizing home prices. The area's housing market appears robust, with a clear preference for homeownership among residents.
