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Zip Code 35175: Rising Home Values and High Ownership Rates in Union Grove, 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 35175, located in Union Grove, Alabama, presents an intriguing case study of homeownership and real estate trends. This area has experienced notable fluctuations in its ownership percentage and average home prices over the past decade, with a general trend towards increased homeownership and rising property values.
The ownership percentage in zip code 35175 has shown a steady increase from 79% in 2013 to 85% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices, which grew from $131,698 in 2013 to $242,698 in 2022, representing an impressive 84% increase over this period. The year 2021 saw a particularly sharp increase in average home prices, jumping from $187,116 in 2020 to $214,041, a 14.4% rise in a single year.
Federal interest rates appear to have played a role in the homeownership trends in this zip code. The period from 2013 to 2022 was characterized by historically low interest rates, ranging from 0.11% to 1.68%. These low rates likely contributed to the increased homeownership rates by making mortgages more affordable for potential buyers. For instance, as interest rates remained below 0.5% from 2013 to 2016, the ownership percentage rose from 79% to 86%.
Conversely, the renter percentage in zip code 35175 has decreased from 18% in 2013 to 15% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. The average rent increased from $672 in 2013 to $692 in 2022, with some fluctuations in between. Notably, there was a significant spike in average rent in 2021, reaching $802, before dropping back to $692 in 2022. This temporary increase may have been influenced by the population growth from 4,991 in 2020 to 5,163 in 2022, potentially creating short-term pressure on the rental market.
The years 2023 and 2024 have seen continued growth in average home prices in zip code 35175. The average home price reached $246,272 in 2023 and further increased to $252,469 in 2024, representing a 2.5% year-over-year growth. This growth has occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the rate of homeownership growth in the coming years.
Looking ahead, based on the historical data and current trends, we can project continued growth in both average home prices and rent prices for zip code 35175 over the next five years. Average home prices are expected to maintain a steady upward trajectory, potentially reaching around $275,000 to $300,000 by 2029. Average rent prices may also continue to rise, albeit at a more moderate pace, potentially reaching $750 to $800 per month in the same timeframe.
In summary, zip code 35175 has demonstrated a robust trend towards increased homeownership and rising property values over the past decade. The area has shown resilience in its real estate market, with home prices continuing to appreciate even in the face of rising interest rates. While the rental market has shrunk slightly, rent prices have generally trended upwards, reflecting the overall strength of the local housing market. These trends suggest a growing preference for homeownership in this Alabama town, potentially driven by its attractiveness as a residential area and the long-term financial benefits of owning property.
