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Zip Code 35978: Average Home Values and Ownership in Rural 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 35978, located in Henagar, Alabama, has experienced significant changes in its housing market over the past decade. This rural area has maintained a strong preference for homeownership, with average home prices showing a substantial upward trend in recent years. The housing dynamics in this zip code reflect a combination of stable ownership rates and rapidly appreciating property values.
The homeownership rate in zip code 35978 has remained relatively constant, fluctuating around 79% from 2013 to 2022. Despite this stability, average home prices have seen remarkable growth. In 2010, the average home price was $108,450, which gradually increased to $133,703 by 2019. However, the most dramatic surge occurred between 2019 and 2022, with prices jumping from $133,703 to $190,670, representing a 42.6% increase in just three years. This rapid appreciation in home values did not significantly impact homeownership rates, suggesting strong local demand and potentially favorable economic conditions for existing homeowners.
Federal interest rates have influenced homeownership trends in the area. From 2010 to 2015, interest rates remained below 0.2%, coinciding with a period of stable homeownership rates around 80%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, there was a slight decrease in homeownership to 77%. This suggests that while higher interest rates may have made mortgages less affordable for some, the impact on overall homeownership in this zip code has been minimal.
The rental market in zip code 35978 has shown interesting trends as well. The percentage of renters increased from 20% in 2013 to 23% in 2022, indicating a growing demand for rental properties. Correspondingly, average rent prices have risen steadily, from $538 in 2013 to $799 in 2022, representing a 48.5% increase. This rise in both renter percentage and rent prices suggests a tightening rental market, possibly driven by population growth from 4,447 in 2019 to 5,169 in 2022.
In 2023 and 2024, the housing market in zip code 35978 continued to evolve. The average home price reached $193,139 in 2023, a slight increase from 2022. However, in 2024, there was a minor correction with prices dipping to $191,775. This coincides with a significant rise in federal interest rates, which jumped to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the slight cooling in home prices.
Looking ahead, predictive models suggest that average home prices in zip code 35978 may continue to appreciate, albeit at a slower pace than seen in recent years. Over the next five years, home prices could potentially reach around $210,000 to $220,000, assuming economic conditions remain stable. For the rental market, average rent prices are projected to continue their upward trajectory, potentially reaching $900 to $950 per month within the next five years, driven by the ongoing demand for rental properties in the area.
In summary, zip code 35978 has demonstrated resilience in its housing market, maintaining high homeownership rates despite significant increases in home prices. The rental market has grown in importance, with rising rents and an increasing proportion of renters. Recent data shows a slight cooling in the housing market, likely influenced by rising interest rates. Moving forward, both the ownership and rental markets are expected to see moderate growth, reflecting the area's ongoing appeal and economic stability.
