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Zip Code 35811: Home Values and Ownership Trends in Huntsville's Resilient Real Estate 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 35811, located in Huntsville, Alabama, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 35811 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate was 78%, and by 2022, it stood at 77%. During this period, average home prices in the area saw a substantial increase. In 2013, the average home price was $149,701, and by 2022, it had risen to $273,637, representing an impressive 82.8% increase over nine years. This trend suggests that while homeownership rates remained fairly constant, the value of homes in the area appreciated significantly.
Federal interest rates have played a role in shaping homeownership trends in zip code 35811. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained steady at around 79%. As interest rates began to rise from 2017 onwards, there was a slight decline in homeownership, dropping to 75% in 2021 when interest rates were at 0.08%. However, by 2022, despite a significant increase in interest rates to 1.68%, homeownership rebounded to 77%, indicating a resilient local housing market.
Renter percentages in zip code 35811 have shown small fluctuations, mirroring the changes in homeownership rates. In 2013, the renter percentage was 21%, and it remained relatively stable, reaching 23% by 2022. Average rent prices, however, have been more volatile. In 2013, the average rent was $997, peaking at $1,041 in 2016 before declining to $854 in 2022. This represents a 14.3% decrease in average rent prices from 2013 to 2022, despite the area's population growth from 29,361 in 2013 to 31,882 in 2022.
Looking at the most recent data, the average home price in zip code 35811 continued to rise, reaching $276,570 in 2023 and $277,240 in 2024. This represents a modest increase of 1.3% from 2022 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 35811 will continue to rise, albeit at a slower pace than observed in the past decade. The average home price could potentially reach around $300,000 by 2029. Average rent prices, which have shown a decreasing trend, may stabilize and potentially see a modest increase, possibly reaching $900-$950 per month by 2029, assuming economic conditions remain stable and population growth continues.
In summary, zip code 35811 has demonstrated a robust housing market with steadily increasing average home prices and relatively stable homeownership rates. The area has shown resilience in maintaining homeownership levels despite fluctuations in federal interest rates. The declining trend in average rent prices, coupled with population growth, suggests a complex rental market dynamic that may evolve in the coming years. As the area continues to develop, these housing trends will likely play a crucial role in shaping the community's socioeconomic landscape.
