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Zip Code 35453: Rising Home Values and Stable Ownership in Coaling, 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 35453, located in Coaling, Alabama, has experienced significant demographic and housing market changes over the past decade. This area has seen a notable increase in population and fluctuations in homeownership rates, with average home prices generally trending upward and average rent prices showing variability.
From 2013 to 2022, the homeownership rate in zip code 35453 remained relatively stable, with minor fluctuations. In 2013, the homeownership rate was 82%, and by 2022, it stood at the same level. During this period, average home prices showed a consistent upward trend. In 2013, the average home price was $114,472, and by 2022, it had increased significantly to $186,269, representing a 62.7% increase over nine years. This substantial rise in home prices did not appear to negatively impact homeownership rates, suggesting other factors may have contributed to maintaining homeownership levels.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting pattern. From 2013 to 2016, as interest rates remained low (ranging from 0.11% to 0.4%), homeownership rates increased slightly from 82% to 86%. However, as interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), homeownership rates showed a slight decline, returning to 85% by 2019. Interestingly, despite the dramatic drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates decreased to 82% in 2020 and 81% in 2021, contrary to the expected trend of increased homeownership during periods of low interest rates.
Renter percentages and average rent prices in zip code 35453 showed some correlation over the years. In 2013, the renter-occupied rate was 18%, with an average rent of $881. As the renter percentage decreased to 13% in 2016, the average rent also decreased to $839. However, by 2022, as the renter percentage returned to 18%, the average rent had increased to $880, nearly matching the 2013 level. It's worth noting that during this period, the population increased from 11,878 in 2013 to 13,144 in 2022, which may have contributed to the pressure on rental prices despite fluctuations in the renter percentage.
In 2023 and 2024, average home prices in zip code 35453 continued to rise, reaching $192,307 in 2023 before slightly declining to $188,372 in 2024. This represents a 3.2% increase from 2022 to 2023, followed by a 2% decrease from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and further to 5.33% in 2024, potentially influencing the slight downturn in home prices.
Looking ahead, predictive models suggest that average home prices in zip code 35453 may continue to show moderate growth over the next five years, albeit at a slower pace than observed in the previous decade. Average rent prices are expected to follow a similar trend, with potential for slight increases as the population continues to grow. However, these projections may be influenced by broader economic factors and local market conditions.
In summary, zip code 35453 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The area has seen substantial population growth, which has likely contributed to the upward pressure on both home prices and rents. The complex interplay between interest rates, homeownership, and rental markets in this zip code highlights the unique characteristics of this local housing market.
