Loading Content...
Zip Code 35824: Huntsville's Housing Boom and Soaring Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 35824, located in Huntsville, Alabama, has experienced significant demographic and real estate changes over the past decade. This area has seen a notable increase in population, growing from 5,094 residents in 2010 to 10,930 in 2022. Alongside this population growth, the zip code has witnessed fluctuations in homeownership rates and substantial increases in average home prices, while average rent prices have shown more moderate changes.
The homeownership rate in zip code 35824 has shown some variability over the years. In 2013, the earliest year with available data, the homeownership rate stood at 49%. This rate increased to a peak of 57% in 2017 before declining slightly to 52% in 2022. During this same period, average home prices in the area saw a dramatic increase. In 2011, the average home price was $143,918. By 2022, this figure had risen to $375,830, representing a remarkable 161% increase over 11 years. This substantial growth in home values did not appear to significantly deter homeownership rates, which remained relatively stable despite the rising costs.
Federal interest rates have played a role in homeownership trends in zip code 35824. From 2011 to 2015, when interest rates were at historic lows (ranging from 0.10% to 0.13%), the homeownership rate in the area increased from 49% to 53%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, even as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, the homeownership rate in the zip code remained relatively stable, suggesting other factors were also influencing local housing decisions.
Renter percentages in zip code 35824 have fluctuated inversely to homeownership rates, as expected. The renter-occupied percentage decreased from 51% in 2013 to 43% in 2017, before rising slightly to 48% in 2022. Average rent prices in the area have shown some volatility. In 2013, the average rent was $1,157, which increased to $1,176 in 2014 before declining to $952 in 2017. By 2022, the average rent had risen again to $1,007. These fluctuations in rent prices don't show a clear correlation with the changes in renter percentages, suggesting that other factors, such as the rapidly growing population (which more than doubled from 2010 to 2022), may have had a more significant impact on rental occupancy rates.
In 2023 and 2024, the real estate market in zip code 35824 continued to evolve. The average home price in 2023 was $378,986, showing a slight increase from 2022. In 2024, the average home price further increased to $379,678, indicating a continued upward trend, albeit at a slower pace compared to previous years. Notably, federal interest rates rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may have impacted homebuying decisions in the area.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 35824 may continue to rise over the next five years, but potentially at a more moderate pace than seen in the early 2020s. The average home price could potentially reach around $400,000 to $425,000 by 2029. Average rent prices, which have shown more stability in recent years, might see gradual increases, potentially reaching $1,100 to $1,200 by 2029, assuming continued population growth and demand for rental properties in the area.
In summary, zip code 35824 has experienced significant growth and changes in its housing market over the past decade. The area has seen substantial increases in average home prices, relatively stable homeownership rates despite rising costs, and moderate fluctuations in average rent prices. The interplay between population growth, federal interest rates, and local economic factors has shaped these trends, creating a dynamic real estate environment in this Huntsville, Alabama zip code.
