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Zip Code 35759: Meridianville's Rising Home Values and Ownership Rates
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 35759, located in Meridianville, Alabama, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a substantial increase in population density and a strong trend towards homeownership, coupled with rising average home prices and fluctuating average rent costs. The homeownership rate in zip code 35759 has shown a remarkable upward trend, increasing from 80% in 2015 to 94% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2015, the average home price was $176,991, which steadily climbed to $328,242 by 2022, representing an impressive 85.5% increase over seven years. This strong correlation suggests that despite rising prices, the area has become increasingly attractive to homebuyers.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 35759. The period from 2015 to 2020 saw relatively low interest rates, ranging from 0.13% to 0.38%, which likely contributed to the spike in homeownership from 80% to 92% during this time. As interest rates began to rise more sharply in 2022 to 1.68%, the homeownership rate stabilized at 94%, indicating that the area maintained its appeal to buyers even as financing costs increased.
The renter population in zip code 35759 has inversely mirrored the homeownership trend, decreasing from 20% in 2015 to just 6% in 2022. Interestingly, average rent prices have shown volatility during this period. In 2015, the average rent was $891, which increased to $1,337 by 2020, a 50% jump. However, by 2022, the average rent had stabilized at $1,338. This trend suggests that as more residents became homeowners, the rental market experienced upward pressure on prices, potentially due to reduced supply of rental properties.
Looking at the most recent data, the average home price in zip code 35759 reached $330,692 in 2023 and slightly decreased to $330,554 in 2024. This minor dip occurs alongside 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 a cooling effect on home price growth in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 35759 will continue to rise, but at a more moderate pace. The area's consistent population growth and high homeownership rate suggest sustained demand for housing. However, higher interest rates may temper price increases. We project average home prices could reach approximately $375,000 to $400,000 by 2029. For average rent prices, we expect a steady increase, potentially reaching $1,500 to $1,600 per month by 2029, driven by the limited rental inventory and overall housing market appreciation.
In summary, zip code 35759 has demonstrated a strong shift towards homeownership, with property values appreciating significantly. The area has maintained its appeal to buyers even in the face of rising home prices and interest rates. The rental market, while shrinking, has seen price increases, reflecting the overall robust housing demand in the area. These trends point to a dynamic and growing community with a strong preference for homeownership.
