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Zip Code 35747: Rising Home Values and High 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 35747, located in Grant, Alabama, presents an intriguing landscape of homeownership and real estate trends over the past decade. This area has experienced significant fluctuations in ownership percentages and housing prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 35747 has shown remarkable resilience, maintaining a high percentage throughout the observed period. In 2013, the area boasted an 88% homeownership rate, which remained relatively stable until 2016 when it dipped to 83%. However, by 2021, the rate had rebounded to an impressive 91%, before settling at 88% in 2022. This trend of high homeownership coincides with a steady increase in average home prices. In 2010, the average home price was $127,687, which more than doubled to $263,496 by 2022, representing a substantial 106% increase over 12 years.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow expected patterns. For instance, the period of historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.40%) coincided with consistently high homeownership rates above 83%. As interest rates began to rise more significantly from 2017 onwards, there was a slight dip in homeownership percentages, though they remained relatively high. This suggests that while low interest rates may have supported high homeownership, other local factors likely played a significant role in maintaining these levels.
Renter percentages and average rent prices in zip code 35747 show an interesting inverse relationship. In 2013, the renter-occupied rate was 11%, with an average rent of $659. By 2018, the renter percentage increased to 19%, coinciding with a peak in average rent at $886 in 2017. However, by 2021, the renter percentage had decreased to 9%, while the average rent reached $797. This fluctuation suggests a complex interplay between supply, demand, and local economic factors affecting the rental market.
Looking at the most recent data, the average home price in zip code 35747 continued its upward trajectory, reaching $265,938 in 2023 and further increasing to $271,459 in 2024. This represents a 3% increase from 2022 to 2024, indicating a sustained growth in property values. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $300,000 by 2029. For rent prices, a moderate increase is expected, potentially reaching around $850-$900 per month on average over the next five years, assuming stable economic conditions and consistent population growth.
In summary, zip code 35747 has demonstrated a strong preference for homeownership, with rates consistently above 80% despite fluctuations in the housing market. The area has seen substantial appreciation in home values, more than doubling over a 12-year period. While rental trends have been more volatile, they appear to be stabilizing. The recent uptick in interest rates may present new challenges for homeownership, but the area's historically high ownership rates suggest a resilient market. As we move forward, the interplay between housing prices, interest rates, and local economic factors will be crucial in shaping the real estate landscape of this Alabama community.
