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Zip Code 35147: Average Home Values and Ownership Trends in Westover, 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 35147, located in Westover, Alabama, has experienced significant changes in population, homeownership rates, and housing prices over the past decade. This area has seen steady growth, with its population increasing from 5,521 in 2010 to 7,673 in 2022. The ownership percentage has shown a gradual decline, while average home prices have risen consistently, and average rent prices have fluctuated over the years.
The homeownership rate in zip code 35147 has decreased from 92% in 2013 to 83% in 2022. During this same period, average home prices have shown a substantial increase. In 2013, the average home price was $168,037, which rose to $298,384 by 2022, representing a 77.6% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a role in homeownership trends in this area. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained stable at around 90-92%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 83%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 35147 has grown from 8% in 2013 to 17% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $1,287, which peaked at $1,481 in 2017 before decreasing to $1,236 in 2022. This fluctuation in rent prices, coupled with the increasing renter population, suggests that other factors such as local economic conditions or housing supply may be influencing the rental market more than demand alone.
In 2023, the average home price in this zip code reached $306,645, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $309,167, while interest rates have risen to 5.33%. These figures indicate a continuing trend of rising home values, even in the face of higher interest rates, which could further impact affordability and homeownership rates in the area.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 35147 are likely to continue their upward trajectory over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices, which have shown more volatility, may stabilize or see modest increases as the renter population continues to grow. However, economic factors and local market conditions will play crucial roles in shaping these trends.
In summary, zip code 35147 has experienced a decline in homeownership rates concurrent with rising average home prices over the past decade. The relationship between federal interest rates and homeownership trends is evident, with higher rates correlating with lower ownership percentages. The rental market has grown, but with fluctuating average rent prices. Recent data from 2023 and 2024 show continued growth in home values despite rising interest rates, suggesting a robust housing market in this area.
