Loading Content...
Zip Code 35127: Pleasant Grove's Shifting Home Values and Ownership Trends Amid Rising Prices
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 35127, located in Pleasant Grove, Alabama, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a gradual shift from predominantly owner-occupied housing to an increasing rental market, coupled with substantial growth in average home values and rent prices.
The homeownership rate in zip code 35127 has shown a steady decline from 2013 to 2022. In 2013, 89% of housing units were owner-occupied, but by 2022, this figure had dropped to 76%. Conversely, the percentage of renter-occupied units increased from 10% to 24% during the same period. This shift coincided with a notable rise in average home prices. In 2013, the average home price was $127,185, which steadily increased to $226,671 by 2022, representing a 78% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code reveals an interesting trend. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 2.16%), homeownership rates continued to decline. This suggests that other factors, such as rising home prices or local economic conditions, may have had a more significant impact on homeownership than interest rates alone.
As the rental market expanded, average rent prices also saw substantial increases. In 2013, the average rent was $998, which rose to $1,241 by 2022, a 24% increase. The most dramatic jump occurred between 2017 and 2018, when average rent increased from $1,132 to $1,468, a 30% rise in a single year. This steep increase in rent prices coincided with a period of declining population, from 9,246 in 2017 to 8,916 in 2022, suggesting that factors other than population growth were driving rent prices upward.
Looking at the most recent data, the average home price in zip code 35127 reached $233,350 in 2023, a 3% increase from 2022. However, in 2024, there was a slight decrease to $232,384, marking the first decline in average home prices in over a decade. This change coincides with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 35127 may continue to experience moderate growth, albeit at a slower pace than the rapid increases seen in the early 2020s. The recent plateau in prices, coupled with higher interest rates, suggests a potential stabilization in the housing market. Average rent prices are likely to continue their upward trajectory, driven by the increasing demand for rental properties as evidenced by the growing percentage of renters in the area.
In summary, zip code 35127 has undergone a significant transformation in its housing market over the past decade. The shift from a predominantly owner-occupied area to one with a growing rental market, combined with substantial increases in both home values and rent prices, indicates a changing landscape for residents. The recent stabilization in home prices and high interest rates may signal a new phase in the local real estate market, potentially affecting future homeownership rates and investment patterns in the area.
