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Zip Code 35226 in Hoover, Alabama: Rising Home Values Amidst Stable Ownership
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 35226, located in Hoover, Alabama, has experienced significant demographic and economic shifts over the past decade. This area has seen a general trend of increasing homeownership rates and rising average home prices, with some fluctuations in recent years.
The homeownership rate in zip code 35226 has remained relatively stable, with slight variations over the years. In 2013, the homeownership rate was 78%, and it maintained this level through 2017. There was a slight dip to 76% in 2018, followed by a recovery to 77% in 2019. The most recent data from 2022 shows the homeownership rate at 76%. Interestingly, the average home prices in this zip code have shown a consistent upward trend during this period. In 2013, the average home price was $241,413, and it steadily increased to $399,460 by 2022, representing a substantial 65.5% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, when interest rates were at historical lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained stable at around 77-78%. As interest rates began to rise from 2017 onwards, there was a slight decrease in homeownership rates, dropping to 76% in 2018 and 2022.
The renter percentage in zip code 35226 has shown slight fluctuations, inversely mirroring the homeownership trends. In 2013, the renter percentage was 21%, and it increased to 23% in 2014. It then stabilized at 22% from 2015 to 2019, before rising to 24% in 2022. The average rent prices have generally increased during this period, from $1,162 in 2013 to $1,461 in 2022, representing a 25.7% increase. The population growth from 31,688 in 2013 to 37,166 in 2022 likely contributed to the upward pressure on rent prices.
In 2023 and 2024, the average home prices in zip code 35226 continued their upward trajectory. The average home price reached $414,361 in 2023 and further increased to $423,951 in 2024. This represents a 3.7% year-over-year increase from 2023 to 2024. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, based on the historical trends and current market conditions, we can project continued growth in both average home prices and rent prices for zip code 35226 over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $475,000 to $500,000 by 2029. Average rent prices may also continue to rise, potentially reaching $1,700 to $1,800 per month in the same timeframe. However, these projections may be influenced by various factors such as economic conditions, local development, and changes in federal interest rates.
In summary, zip code 35226 has demonstrated a robust housing market with steadily increasing average home prices and relatively stable homeownership rates. The area has also seen consistent population growth and rising average rent prices. The recent increases in federal interest rates may pose challenges to homeownership in the near future, but the strong local market fundamentals suggest continued growth in both the ownership and rental sectors.
