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Zip Code 35474: Rising Home Values and Ownership Rates in Moundville, 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 35474, located in Moundville, Alabama, has experienced significant demographic and housing market changes over the past decade. This area has seen a notable increase in population and homeownership rates, coupled with rising average home prices and average rent costs. The homeownership rate in zip code 35474 has shown a strong upward trend, particularly in recent years. In 2013, the homeownership rate was 84%, which increased to 89% by 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $134,858, which grew steadily to reach $208,645 by 2022, representing a 54.7% increase over this period. The relationship between federal interest rates and homeownership rates in this area appears to follow the general trend of lower interest rates encouraging homeownership. For instance, when federal interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate in zip code 35474 reached its peak at 90% in 2021. This suggests that the low-interest environment likely made home financing more accessible for residents.
Conversely, the percentage of renters in zip code 35474 has decreased from 18% in 2019 to 11% in 2022. Despite this decrease in the renter population, average rent prices have continued to rise. The average rent increased from $924 in 2019 to $962 in 2022, a 4.1% increase. This trend might be attributed to the growing population in the area, which increased from 7,102 in 2019 to 9,085 in 2022, potentially putting pressure on the available rental inventory.
In 2023 and 2024, the housing market in zip code 35474 continued its upward trajectory. The average home price reached $215,081 in 2023 and further increased to $219,905 in 2024. This represents a 5.4% increase from 2022 to 2024. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, based on the consistent upward trend observed in both average home prices and average rent costs, it's projected that these figures will continue to rise over the next five years. Average home prices could potentially reach around $250,000 by 2029, while average rent prices might exceed $1,050 per month. However, the rate of increase may be moderated by the higher interest rate environment.
In summary, zip code 35474 has experienced a significant increase in homeownership rates and average home prices over the past decade. The area has also seen a decrease in the percentage of renters, although average rent prices have continued to rise. The relationship between federal interest rates and homeownership rates appears to follow expected patterns, with lower rates corresponding to higher homeownership. As the population continues to grow and housing prices increase, it will be important to monitor how these trends impact the overall affordability and accessibility of housing in this Alabama town.
