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Zip Code 35957: Rising Home Values and Fluctuating Ownership Rates in Boaz, Alabama
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 35957, located in Boaz, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, with a population of 16,684 in 2022, has seen fluctuations in both owner-occupied and rental properties, alongside significant changes in average home and rent prices.
The ownership percentage in zip code 35957 has shown a slight overall decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 69%, which decreased to 63% by 2019. However, it rebounded to 69% in 2022. This trend correlates interestingly with average home prices, which have steadily increased over the same period. The average home price in 2013 was $97,220, rising to $176,162 by 2022, representing an impressive 81% increase over nine years.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.4%), homeownership rates in the area decreased slightly from 69% to 65%. This counterintuitive trend might be attributed to other local economic factors. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 65-66%. Interestingly, despite a sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates increased to 67% and then 69%, possibly due to pandemic-related factors and increased affordability of mortgages.
The rental market in zip code 35957 has shown an inverse relationship to homeownership trends. The percentage of renters increased from 31% in 2013 to a peak of 37% in 2019, before decreasing back to 31% in 2022. Average rent prices have generally increased over this period, starting at $618 in 2013 and reaching $671 in 2022, with some fluctuations. Notably, there was a significant spike in average rent to $739 in 2016, coinciding with the lowest homeownership rate of 65% during this period.
In 2023 and 2024, average home prices in zip code 35957 continued to rise, reaching $179,683 in 2023 and $183,170 in 2024. This represents a 2% year-over-year increase from 2023 to 2024. Concurrently, federal interest rates have remained high, at 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 35957 will likely continue to increase over the next five years, albeit at a potentially slower rate due to higher interest rates. A conservative estimate would put the average home price around $200,000 by 2029. Rent prices may also continue to rise, potentially reaching an average of $750-$800 per month in the same timeframe, assuming steady population growth and demand for rental properties.
In summary, zip code 35957 has demonstrated resilience in its housing market, with steadily increasing home values despite fluctuations in homeownership rates. The interplay between federal interest rates, homeownership, and rental markets has created a dynamic housing landscape in this Alabama city. The continued rise in both home prices and rent suggests a robust demand for housing in the area, which is likely to persist in the coming years.
