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Zip Code 35459: Average Home Values and Ownership Trends in Rural 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 35459, located in Geiger, Alabama, has experienced fluctuating trends in homeownership rates and housing prices over the past decade. This rural area has seen significant changes in its demographic makeup and housing market dynamics.
The homeownership rate in zip code 35459 has shown a general decline from 2013 to 2020, with a slight recovery in recent years. In 2013, the area had a 74% homeownership rate, which increased to 79% in 2014 and remained stable until 2016. However, from 2017 onwards, there was a gradual decrease, reaching a low of 64% in 2020. The rate has since rebounded to 73% in 2022. This trend in homeownership rates appears to have an inverse relationship with average rent prices, which have generally increased over the same period.
Federal interest rates have played a role in shaping homeownership trends in zip code 35459. The period from 2013 to 2015 saw historically low interest rates, ranging from 0.11% to 0.13%, which likely contributed to the high homeownership rates observed during this time. As interest rates began to rise from 2016 onwards, reaching 2.16% in 2019, homeownership rates started to decline. The sudden drop in interest rates to 0.38% in 2020 may have helped stabilize homeownership rates, leading to the recovery seen in 2021 and 2022.
Renter percentages in zip code 35459 have shown an opposite trend to homeownership rates. Starting at 25% in 2013, the renter population decreased to 21% from 2014 to 2016. However, from 2017 onwards, there was a general increase in renters, peaking at 36% in 2020 before settling at 27% in 2022. Average rent prices have shown a consistent upward trend, rising from $501 in 2013 to $605 in 2022, representing a 20.8% increase over the decade. This increase in rent prices may have contributed to the fluctuations in the renter population, as affordability became a concern for some residents.
In 2023, the average home price in zip code 35459 was $192,782, with federal interest rates at 5.02%. Moving into 2024, we see a slight decrease in average home prices to $185,827, while interest rates have increased to 5.33%. This recent data suggests a cooling in the housing market, possibly due to the higher interest rates making mortgages less affordable for potential buyers.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 35459 may continue to experience moderate fluctuations. If interest rates remain elevated, we could see a continued slight downward pressure on home prices. However, given the area's rural nature and limited housing stock, any decreases are likely to be modest. For rent prices, the trend suggests a continued gradual increase, potentially reaching around $650-$700 per month by 2029, assuming current economic conditions and population trends persist.
In summary, zip code 35459 has experienced a complex interplay between homeownership rates, rental percentages, and housing prices over the past decade. The area has seen a recent recovery in homeownership rates after a period of decline, while rent prices have steadily increased. The relationship between federal interest rates and homeownership trends is evident, with lower rates generally corresponding to higher homeownership rates. As we move forward, the housing market in this zip code is likely to remain sensitive to broader economic factors, with moderate price adjustments expected in both the rental and homeownership sectors.
