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Zip Code 35803: Aerospace Hub Maintains High Homeownership Despite Rising Home Values
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 35803, located in Huntsville, Alabama, has experienced significant changes in its real estate market over the past decade. This area, known for its proximity to the U.S. Space and Rocket Center, has maintained a high rate of homeownership while seeing substantial growth in average home prices and average rent prices. The ownership percentage in zip code 35803 has remained relatively stable, ranging from 81% to 84% between 2013 and 2022. During this period, average home prices have shown a remarkable upward trend. In 2010, the average home price was $107,284, which steadily increased to $305,994 by 2022, representing a 185% increase over 12 years. This trend suggests a strong correlation between rising home values and sustained high homeownership rates in the area.
Federal interest rates have played a significant role in homeownership trends. From 2010 to 2021, interest rates remained historically low, ranging from 0.08% to 2.16%. This period of low interest rates coincided with the area's consistently high homeownership rates, as lower borrowing costs typically make homeownership more accessible. For instance, in 2020, when the federal interest rate dropped to 0.38%, the homeownership rate in the zip code was 82%.
Renter percentages in zip code 35803 have fluctuated slightly, ranging from 16% to 19% between 2013 and 2022. Average rent prices have shown moderate volatility during this period. In 2013, the average rent was $1,154, which decreased to $1,055 in 2016 before rising again to $1,099 in 2022. The population in the zip code has grown from 24,788 in 2010 to 27,430 in 2022, potentially contributing to the overall demand for rental properties despite the high homeownership rate.
In 2023 and 2024, the real estate market in zip code 35803 continued to evolve. The average home price reached $308,785 in 2023, showing a slight increase from 2022. However, in 2024, there was a minor decrease to $308,054. Notably, federal interest rates rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and property values in the area.
Looking ahead, predictive models suggest that average home prices in zip code 35803 may continue to rise, albeit at a slower pace than in previous years. Over the next five years, average home prices could potentially reach around $330,000 to $350,000, assuming current economic conditions persist. Average rent prices are also expected to increase moderately, potentially reaching $1,200 to $1,300 per month by 2029.
In summary, zip code 35803 in Huntsville, Alabama, has maintained a high rate of homeownership despite significant increases in average home prices. The area has benefited from historically low interest rates, which supported homeownership levels. While renter percentages have remained relatively stable, average rent prices have shown some fluctuation. The recent rise in interest rates and the slight cooling of home price growth in 2024 may signal a shift in the market dynamics, potentially affecting future homeownership rates and property values in this desirable Huntsville neighborhood.
