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Zip Code 36034: Glenwood's Housing Market Dynamics - Average Home Values and Ownership Trends
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
Glenwood, located in zip code 36034 in Alabama, is a small community that has experienced notable demographic and housing market changes over the past decade. This analysis examines the trends in homeownership, average home prices, and average rent prices in the area.
The homeownership rate in Glenwood has remained relatively stable over the years, with a slight decrease from 82% in 2013 to 81% in 2022. During this period, average home prices in the area have shown a steady upward trend. In 2017, the average home price was $106,039, which increased to $130,337 by 2022, representing a 22.9% growth over five years.
The relationship between federal interest rates and homeownership rates in Glenwood appears to follow the general trend observed nationally. As interest rates remained low between 2013 and 2021 (ranging from 0.08% to 1.83%), the homeownership rate in the area stayed relatively high, fluctuating between 82% and 87%. This aligns with the notion that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Glenwood has seen a slight increase from 17% in 2013 to 19% in 2022. Average rent prices have shown some fluctuation during this period. In 2013, the average rent was $668, which decreased to $591 in 2018 before rising again to $690 in 2022. This represents a 16.8% increase in average rent prices from 2018 to 2022. The population growth from 971 in 2013 to 1,123 in 2022 may have contributed to the increased demand for rental properties and the subsequent rise in rent prices.
Looking at the most recent data, the average home price in Glenwood for 2023 was $127,825, showing a slight decrease from the 2022 figure. In 2024, the average home price further decreased to $122,511. This downward trend coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on the housing market in the area.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Glenwood may experience a period of stabilization or slight decline in the short term, followed by a gradual increase as the market adjusts to higher interest rates. Average rent prices are expected to continue their upward trajectory, albeit at a more moderate pace, as the rental market responds to changes in homeownership affordability and population growth.
In summary, Glenwood has maintained a high homeownership rate despite fluctuations in the housing market. The area has seen significant growth in average home prices over the past decade, while rent prices have shown more recent increases. The current higher interest rate environment is likely to influence both the homeownership and rental markets in the coming years, potentially leading to a period of adjustment in housing prices and rental rates.
