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Zip Code 35739: Rising Home Values and Stable Ownership in Ardmore, 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 35739, located in Ardmore, Alabama, presents an interesting case study of homeownership and housing market dynamics. This area has experienced fluctuations in both population and housing trends over the past decade, with a generally high rate of homeownership and steadily increasing average home prices.
The homeownership rate in zip code 35739 has remained relatively stable, hovering around 75-79% between 2013 and 2022. During this period, average home prices showed a consistent upward trend. In 2013, the average home price was $119,663, which grew to $233,019 by 2022, representing a significant increase of 94.7% over nine years. This trend suggests a strong correlation between sustained high homeownership rates and rising property values in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 35739. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates remained high at 77% and 76%. This aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable. However, it's worth noting that the area maintained high homeownership rates even as interest rates began to rise in 2022 to 1.68%, with ownership reaching 79% that year.
Renter percentages in zip code 35739 have shown slight fluctuations, ranging from 19% to 24% between 2013 and 2022. Average rent prices have generally increased over this period, albeit with some variations. In 2013, the average rent was $729, which increased to $843 by 2022, a 15.6% rise. Interestingly, there was a significant jump in average rent from $675 in 2015 to $868 in 2017, a 28.6% increase in just two years. This spike coincided with a period of population decline from 5,397 in 2015 to 5,147 in 2017, suggesting that other factors beyond population changes were influencing rent prices.
In 2023, the average home price in zip code 35739 reached $238,734, a 2.5% increase from 2022. This growth continued into 2024, with prices rising to $243,152, marking a 1.8% increase from 2023. Notably, federal interest rates also saw significant increases during this period, rising to 5.02% in 2023 and further to 5.33% in 2024. Despite these higher interest rates, which typically make borrowing more expensive, the housing market in this zip code has continued to show price appreciation.
Looking ahead, based on the historical data and current trends, we can forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to maintain a steady upward trajectory, potentially reaching around $280,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $950 per month within the same timeframe. However, these projections may be influenced by various factors including economic conditions, local development, and broader housing market trends.
In summary, zip code 35739 demonstrates a robust housing market characterized by high homeownership rates and consistently rising property values. The area has shown resilience in maintaining strong homeownership levels even amid fluctuating interest rates and population changes. The steady increase in both home prices and rent suggests a sustained demand for housing in this zip code, pointing towards a positive outlook for property values and investment opportunities in the coming years.
