Loading Content...
Zip Code 35444: Resilient Homeownership Amid Rising Home Values in Brookwood, Alabama
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 35444, located in Brookwood, Alabama, presents an interesting case study in homeownership and housing market trends. This area has experienced significant fluctuations in both ownership rates and housing prices over the past decade, with a general trend towards increased homeownership and rising property values.
The homeownership rate in zip code 35444 has shown a notable increase from 2013 to 2022. In 2013, the area had an owner-occupancy rate of 81%, which rose to 82% by 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. The average home price in 2013 was $109,683, and by 2022, it had risen to $185,095, representing a remarkable 68.8% increase over this period.
Examining the relationship between federal interest rates and homeownership rates reveals some interesting patterns. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), the homeownership rate remained relatively stable, hovering around 80%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate actually increased, reaching 86% in 2019. This suggests that other local factors may have had a stronger influence on homeownership than national interest rates in this particular zip code.
Renter percentages and average rent prices in zip code 35444 have shown an inverse relationship to homeownership trends. As the percentage of renters decreased from 19% in 2013 to 18% in 2022, average rent prices increased significantly. The average rent rose from $742 in 2013 to $1,042 in 2022, a 40.4% increase. This substantial rise in rent prices occurred despite fluctuations in the local population, which peaked at 4,115 in 2017 before declining to 3,721 in 2022.
Looking at the most recent data, the average home price in zip code 35444 reached $192,593 in 2023, showing continued growth from the previous year. However, in 2024, there was a slight decrease to $189,816, marking the first decline in average home prices in over a decade. This coincides with the federal interest rate rising to 5.33% in 2024, the highest it has been since 2007.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 35444 may experience a period of stabilization or slight decline in the short term, influenced by the current high interest rates. However, given the area's long-term appreciation trend, prices are likely to resume their upward trajectory within 2-3 years, potentially reaching around $210,000 by 2029. Average rent prices are expected to continue their upward trend, albeit at a slower pace, potentially reaching approximately $1,200 by 2029.
In summary, zip code 35444 has demonstrated a strong trend towards homeownership, with significant increases in both the percentage of owner-occupied homes and average home prices over the past decade. Despite rising interest rates, the area has maintained a high rate of homeownership, suggesting strong local demand for housing. The rental market has seen substantial price increases despite a decreasing proportion of renters, indicating a competitive rental environment. The recent slight downturn in home prices, coupled with high interest rates, may present a temporary shift in the market, but the long-term trend suggests continued growth in both home values and rental prices in this area.
