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Zip Code 35180: Warrior, Alabama's High Homeownership and Rising Home Values
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 35180, located in Warrior, Alabama, has experienced notable shifts in its real estate landscape over the past decade. This area, spanning 85.69 square miles, has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 35180 has remained relatively stable, with a slight decline from 87% in 2014 to 85% in 2022. During this period, average home prices have shown a consistent upward trend. In 2014, the average home price was $133,060, which steadily increased to $221,969 by 2022, representing a significant 66.8% growth over eight years. This rise in home prices, despite a minor decrease in homeownership, suggests a robust housing market in the area.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2014 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%, which generally encourages homeownership due to more affordable financing options. However, the slight decline in homeownership from 88% in 2014 to 87% in 2020 indicates that other factors, such as rising home prices, may have counteracted the positive effect of low interest rates on homeownership in this zip code.
The rental market in zip code 35180 has shown an interesting trend. The percentage of renters increased from 8% in 2014 to 15% in 2022, nearly doubling over this period. Concurrently, average rent prices rose from $651 in 2014 to $780 in 2022, an increase of 19.8%. This growth in both renter percentage and rent prices suggests an increasing demand for rental properties in the area, possibly driven by the rising home prices that may have priced some potential buyers out of the market.
In 2023 and 2024, the housing market in zip code 35180 continued to evolve. The average home price reached $228,043 in 2023 and slightly increased to $229,243 in 2024, indicating a slowdown in price growth compared to previous years. This coincides with a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially cooling the housing market.
Looking ahead, based on historical trends and current market conditions, we can forecast potential 5-year trends for average home and rent prices in zip code 35180. Average home prices are likely to continue their upward trajectory, albeit at a slower pace due to higher interest rates. We might expect average home prices to reach around $250,000 to $260,000 by 2029. For rent prices, the trend suggests continued growth, potentially reaching an average of $900 to $950 per month by 2029, driven by the increasing renter population and overall housing demand in the area.
In summary, zip code 35180 has demonstrated a resilient housing market with steadily increasing home prices and a growing rental sector. The slight decline in homeownership, coupled with rising home prices and rents, points to a shifting landscape where renting is becoming more prevalent. The recent slowdown in home price growth and the impact of higher interest rates will be crucial factors shaping the area's real estate market in the coming years.
