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Zip Code 36013: Rising Home Values and High Ownership Rates in Pike Road, 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
Pike Road, located in zip code 36013 in Alabama, has experienced notable changes in homeownership rates and housing prices over the past decade. This small community has seen a general trend of increasing homeownership and rising average home prices, with some fluctuations in rental rates and average rent prices. The homeownership rate in zip code 36013 has shown a strong upward trend, increasing from 86% in 2016 to 94% in 2022. This significant rise in homeownership coincides with an increase in average home prices. In 2017, the average home price was $306,902, and by 2022, it had risen to $386,576, representing a 26% increase over five years. This positive correlation between homeownership rates and average home prices suggests a growing demand for housing in the area, potentially driven by factors such as local economic growth or improved community amenities.
The relationship between federal interest rates and homeownership rates in Pike Road appears to follow the general trend observed nationwide. As interest rates remained relatively low between 2017 and 2021 (ranging from 1% to 2.16%), homeownership rates in the area increased from 90% to 95%. This aligns with the well-established principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Renter percentages in zip code 36013 have shown a corresponding decrease as homeownership rates increased. The percentage of renters dropped from 13% in 2016 to just 5% in 2022. Interestingly, despite the declining renter population, average rent prices have fluctuated over the years. In 2013, the average rent was $1,457, peaking at $1,716 in 2014, and then settling at $1,599 in 2022. These fluctuations in rent prices, despite the decreasing renter population, could be influenced by factors such as changes in housing quality or local economic conditions.
Looking at the most recent data, average home prices in zip code 36013 continued to rise in 2023 and 2024. In 2023, the average home price reached $404,578, and in 2024, it further increased to $406,236. This represents a steady upward trend in property values. Notably, federal interest rates have also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically discourage home buying, the local market has shown resilience with continued price appreciation.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 36013 will continue to rise, albeit at a potentially slower rate due to the current higher interest rate environment. We expect average home prices to reach approximately $450,000 by 2029. For rent prices, the forecast suggests a moderate increase, potentially reaching an average of around $1,800 per month by 2029, assuming the local economy remains stable and housing demand continues to grow.
In summary, Pike Road in zip code 36013 has demonstrated a strong trend towards homeownership, with a corresponding increase in average home prices. The community has shown resilience in the face of rising interest rates, maintaining growth in property values. The rental market, while shrinking in terms of percentage, has maintained relatively stable average rent prices. These trends suggest a robust and desirable housing market in the area, with a strong preference for homeownership among residents.
