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Zip Code 35244: Rising Home Values and Homeownership Trends in Hoover, 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 35244, located in Hoover, Alabama, has experienced notable shifts in homeownership, average home prices, and average rent prices over the past decade. This area has seen a general trend of increasing property values and a fluctuating balance between owner-occupied and renter-occupied housing units.
The homeownership rate in zip code 35244 has shown an overall upward trend, with some fluctuations. In 2013, the homeownership rate was 64%, which increased to 70% by 2020, representing a significant rise in owner-occupied housing. However, there was a slight decline to 66% in 2022. This trend generally aligns with the changes in average home prices. The average home price in the area rose from $270,900 in 2013 to $435,396 in 2022, marking a substantial increase of 60.7% over this period. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $345,657 to $435,396, a 26% increase in just two years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. From 2013 to 2020, when interest rates were generally low (ranging from 0.09% to 2.16%), homeownership rates increased from 64% to 70%. This aligns with the principle that lower interest rates often encourage homeownership due to more affordable financing options. However, despite a sharp increase in interest rates to 1.68% in 2022, homeownership rates only slightly decreased to 66%, suggesting other factors may also be influencing homeownership in this area.
Renter percentages in zip code 35244 have shown an inverse relationship to homeownership rates, naturally. The percentage of renters decreased from 34% in 2013 to 30% in 2020, before rising slightly to 34% in 2022. Interestingly, average rent prices have steadily increased despite these fluctuations. The average rent rose from $1,306 in 2013 to $1,503 in 2022, a 15.1% increase. This upward trend in rent prices, despite varying renter percentages, could be attributed to overall property value increases in the area and possibly changes in the quality or type of rental properties available.
In 2023 and 2024, the housing market in zip code 35244 continued to show growth. The average home price reached $444,421 in 2023 and further increased to $453,540 in 2024, representing a 2.1% year-over-year increase. This growth occurred despite high federal interest rates of 5.02% in 2023 and 5.33% in 2024, which typically could slow down housing market activity.
Looking ahead, based on the historical data and current trends, we can forecast potential 5-year trends for average home and rent prices in zip code 35244. Assuming the current rate of growth continues, average home prices could potentially reach around $500,000 by 2029. For rent prices, if the trend of steady increases persists, we might see average rents approach $1,700 to $1,800 per month in the same timeframe.
In summary, zip code 35244 has demonstrated a robust housing market with increasing property values and a generally high rate of homeownership. Despite recent increases in interest rates, both home prices and rent prices have continued to rise, indicating strong demand in this area. The coming years may see further growth in both sectors, although the rate of increase could be moderated by higher interest rates and other economic factors.
