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Zip Code 35216: Rising Home Values and Ownership in Vestavia Hills, 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 35216, located in Vestavia Hills, Alabama, presents an intriguing case study of homeownership and rental trends. This suburban area has experienced notable fluctuations in its ownership percentage and average home prices over the past decade, while also seeing changes in its rental market dynamics. The homeownership rate in zip code 35216 has shown a general upward trend, particularly in recent years. In 2013, the ownership percentage stood at 53%, and after some fluctuations, it increased to 56% by 2022. This rise in homeownership coincides with a significant increase in average home prices. The average home price in the area rose from $216,582 in 2013 to $375,392 in 2022, representing a substantial 73% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. From 2013 to 2020, when interest rates were generally low (ranging from 0.09% to 2.16%), the homeownership rate remained relatively stable, hovering around 52-53%. However, as interest rates began to rise more significantly in 2022 (1.68%), we saw a notable increase in homeownership to 56%. This suggests that local factors, such as job market conditions or demographic shifts, may have played a more significant role in homeownership trends than national interest rates in this particular area.
Regarding rental trends, the percentage of renters in zip code 35216 has shown a slight decline in recent years, from 47% in 2013 to 44% in 2022. Despite this decrease in the renter population, average rent prices have increased substantially. The average rent rose from $1,235 in 2013 to $1,423 in 2022, an increase of about 15%. This rise in rent prices, despite a decreasing renter population, could indicate a tightening rental market or an increase in the quality of available rental properties.
Moving to more recent data, in 2023, the average home price in zip code 35216 reached $388,318, a further increase from 2022. This upward trend continued into 2024, with average home prices hitting $396,435. Interestingly, these price increases occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Looking ahead, based on the trends observed, we can project continued growth in both average home prices and rent prices for zip code 35216 over the next five years. Average home prices could potentially reach the $450,000 to $500,000 range by 2029, assuming a continuation of the current growth rate. Average rent prices might increase to around $1,600 to $1,700 per month in the same timeframe. However, these projections could be influenced by various factors such as changes in local economic conditions, housing supply, or shifts in federal monetary policy.
In summary, zip code 35216 has demonstrated a robust housing market with increasing homeownership rates and rising property values. The area has shown resilience to rising interest rates, with both home prices and rent prices continuing to climb. The slight decrease in the renter population, coupled with increasing rent prices, suggests a competitive rental market. These trends indicate a strong demand for housing in this suburban Alabama community, likely driven by its desirable location and local economic factors.
