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Zip Code 35748: Significant Home Value Growth and Increasing Ownership in Gurley, 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 35748, located in Gurley, Alabama, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a notable increase in owner-occupied housing, coupled with substantial growth in average home values.
From 2013 to 2022, the percentage of owner-occupied homes in zip code 35748 increased from 80% to 87%, indicating a strong trend towards homeownership. This increase coincided with a remarkable rise in average home prices, which more than tripled from $163,975 in 2013 to $310,365 in 2022. The year 2021 saw a particularly sharp increase in average home prices, jumping from $226,082 in 2020 to $268,441, an 18.7% increase in just one year.
The trend of increasing homeownership rates in this zip code appears to have been influenced by federal interest rates. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), the homeownership rate increased from 80% to 83%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, the homeownership rate continued to climb, reaching 87% in 2022. This suggests that while low interest rates initially spurred homeownership, other factors such as local economic conditions may have sustained this trend even as rates increased.
Conversely, the percentage of renter-occupied housing in zip code 35748 decreased from 17% in 2013 to 13% in 2022. Despite this decline in the renter population, average rent prices showed an upward trend, increasing from $651 in 2013 to $819 in 2022, a 25.8% increase over the period. The population of the zip code also grew during this time, from 5,578 in 2013 to 5,833 in 2022, which may have contributed to the upward pressure on rent prices despite the decreasing percentage of renters.
In 2023, the average home price in zip code 35748 slightly decreased to $309,846, and in 2024 it further declined to $303,720. This represents a 2.1% decrease from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may have contributed to the cooling of home prices.
Looking ahead, based on the historical trends and current market conditions, we can expect the average home prices in zip code 35748 to stabilize or experience modest growth over the next five years. The recent interest rate increases may dampen rapid price appreciation, potentially leading to a more balanced market. Average rent prices are likely to continue their gradual upward trend, influenced by the area's population growth and the overall housing market dynamics.
In summary, zip code 35748 has demonstrated a strong shift towards homeownership, with significant increases in both the percentage of owner-occupied homes and average home prices over the past decade. While recent data shows a slight cooling in the housing market, the area's consistent population growth and historical trends suggest a resilient real estate market in the coming years.
