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Zip Code 35763: Soaring Home Values and Stable Ownership in Huntsville's Growing Market
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 35763, located in Huntsville, Alabama, has experienced significant growth and development over the past decade. This area has maintained a consistently high rate of homeownership, with average home prices showing a steady upward trend. The average rent prices have also increased, albeit with some fluctuations.
The homeownership rate in zip code 35763 has remained remarkably stable, hovering around 89-90% from 2013 to 2022. This high rate of homeownership coincides with a substantial increase in average home prices. In 2010, the average home price was $161,982, which rose to $423,774 by 2022, representing a 161.6% increase over 12 years. The most significant jump occurred between 2020 and 2022, with average home prices rising from $303,604 to $423,774, a 39.6% increase in just two years. This trend suggests a strong correlation between the stable homeownership rates and the rising property values in the area.
Federal interest rates have played a role in maintaining high homeownership rates in zip code 35763. From 2010 to 2021, interest rates remained historically low, ranging from 0.08% to 2.16%. These low rates likely contributed to the area's consistently high homeownership percentages by making mortgages more affordable. Even as interest rates began to rise in 2022 to 1.68%, the homeownership rate remained steady at 90%, indicating a resilient housing market in this zip code.
The renter population in zip code 35763 has remained relatively small, fluctuating between 10% and 12% from 2013 to 2022. Despite this small percentage, average rent prices have shown an overall upward trend. In 2013, the average rent was $1,533, which increased to $1,797 by 2022, representing a 17.2% rise over nine years. The highest average rent was recorded in 2019 at $1,961. The population growth from 13,223 in 2013 to 17,531 in 2022 may have contributed to the increased demand for rental properties, despite the high homeownership rate.
Looking at the most recent data, the average home price in zip code 35763 reached $427,869 in 2023, showing a slight increase from 2022. However, in 2024, there was a minor decrease to $426,592. This slight dip coincides with a significant rise in federal interest rates, which increased from 5.02% in 2023 to 5.33% in 2024. These higher interest rates may be tempering the rapid home price growth seen in previous years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 35763 will continue to rise, albeit at a more moderate pace than seen in recent years. The current high interest rates may slow down price growth in the short term, but the area's consistent popularity and limited housing supply are likely to maintain upward pressure on prices. Average rent prices are expected to follow a similar trajectory, with steady increases driven by population growth and the limited rental market in the area.
In summary, zip code 35763 in Huntsville, Alabama, has demonstrated a robust and stable housing market characterized by high homeownership rates and steadily increasing property values. The area has weathered various economic conditions, maintaining its appeal to homeowners even as prices have risen significantly. The rental market, while smaller, has also shown resilience with increasing average rents. As the area continues to grow, these trends are likely to persist, making 35763 an attractive location for both homeowners and investors.
