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Zip Code 35571: Rising Home Values and Ownership Rates 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 35571, located in Hodges, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This rural area has shown a general trend towards increased homeownership, with fluctuations in both average home prices and average rent costs.
The ownership percentage in zip code 35571 has seen a significant increase from 78% in 2013 to 89% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2017, the average home price was $101,917, which steadily increased to $154,960 by 2022, representing a 52% increase over five years. This correlation suggests that rising property values have not deterred local residents from purchasing homes, possibly indicating a strong local economy or a preference for homeownership in this community.
Federal interest rates have played a role in homeownership trends in zip code 35571. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the initial increase in homeownership from 78% to 80%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership continued to increase, reaching 87% by 2019. This suggests that local factors may have outweighed the impact of rising interest rates on homeownership decisions in this area.
The renter percentage in zip code 35571 has correspondingly decreased from 22% in 2013 to 10% in 2022. Interestingly, average rent prices have shown volatility during this period. The average rent increased from $573 in 2013 to a peak of $672 in 2020, before dropping sharply to $434 in 2021 and then rebounding to $669 in 2022. This fluctuation in rent prices, particularly the sharp drop in 2021, may be attributed to local economic factors or changes in the rental market supply and demand dynamics.
In 2023, the average home price in zip code 35571 reached $169,234, continuing the upward trend observed in previous years. However, 2024 saw a slight decrease to $163,973, marking the first decline in average home prices in recent years. This coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the area.
Looking ahead, predictive models suggest that average home prices in zip code 35571 may continue to face downward pressure in the short term due to the high interest rate environment. However, given the strong preference for homeownership in the area, prices are likely to stabilize and potentially resume a modest upward trajectory over the next five years. Rent prices, which have shown volatility, are expected to stabilize and potentially increase moderately as the rental market adjusts to the changing dynamics of homeownership in the area.
In summary, zip code 35571 has demonstrated a strong trend towards homeownership, with the percentage of owner-occupied homes increasing significantly despite rising home prices. The interplay between federal interest rates, local economic factors, and housing preferences has shaped a unique market where homeownership has thrived even in the face of increasing property values. The recent cooling of home prices in 2024, coupled with high interest rates, marks a potential turning point that will be crucial to monitor in the coming years.
