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Zip Code 35645: Rising Home Values and Stable Ownership in Killen, 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 35645, located in Killen, Alabama, presents an interesting case study in homeownership and housing market trends. This area has maintained a consistently high rate of homeownership over the past decade, with average home prices showing steady growth. The rental market, while smaller, has also experienced fluctuations in both occupancy rates and average rent prices.
Homeownership rates in zip code 35645 have remained relatively stable, ranging from 81% to 85% between 2013 and 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $147,356, which increased to $244,043 by 2022, representing a substantial 65.6% growth over nine years. Notably, the most significant jump occurred between 2020 and 2022, with prices rising from $184,625 to $244,043, a 32.2% increase in just two years.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of stable homeownership rates around 82-83%. As interest rates began to rise in 2017, reaching 1.83% by 2018, homeownership rates showed resilience, even increasing slightly to 84% by 2019. The sharp drop in interest rates to 0.08% in 2021 corresponded with a peak in homeownership at 85%, demonstrating the relationship between low interest rates and increased homeownership.
The rental market in zip code 35645 has shown inverse trends to homeownership. Renter-occupied housing fluctuated between 15% and 19% from 2013 to 2022. Average rent prices have been volatile, ranging from a low of $600 in 2016 to a high of $710 in 2018. Interestingly, as the population decreased from 13,356 in 2013 to 12,966 in 2022, average rent prices increased overall, rising from $706 in 2013 to $689 in 2022, despite some year-to-year fluctuations.
In 2023 and 2024, the housing market in zip code 35645 continued its upward trajectory. The average home price reached $258,457 in 2023 and further increased to $263,442 in 2024, representing a 7.9% growth over two years. This growth occurred despite rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, suggesting strong local demand for housing in this area.
Looking ahead, predictive models suggest that average home prices in zip code 35645 will continue to rise over the next five years, potentially reaching around $300,000 by 2029. Average rent prices are also expected to increase, albeit at a slower pace, potentially reaching $750-$800 per month in the same timeframe.
The analysis of zip code 35645 reveals a robust housing market characterized by high homeownership rates and steadily increasing average home prices. Despite fluctuations in federal interest rates, the area has maintained strong homeownership levels, indicating a stable and desirable community. The rental market, while smaller, has shown resilience with generally increasing average rents despite population decreases. As we look to the future, the trends suggest continued growth in both home values and rental prices, reflecting the ongoing attractiveness of this Alabama town for residents and investors alike.
