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Zip Code 36037: Rising Home Values and Declining Ownership in Greenville, Alabama's Small-Town Charm
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 36037, located in Greenville, Alabama, offers a unique perspective on housing trends in a small Southern city. Over the past decade, this area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic shifts and local market dynamics. The homeownership rate in zip code 36037 has remained relatively stable, hovering around 68-70% between 2013 and 2022. However, there have been subtle shifts within this range. In 2013, the homeownership rate stood at 69%, and by 2022, it had slightly decreased to 66%. This minor decline coincides with changes in average home prices. In 2013, the average home price was $88,498, and it steadily increased to $113,809 by 2022, representing a 28.6% increase over this period. Despite this rise in home prices, the homeownership rate remained relatively resilient, suggesting that other factors, such as local economic conditions or housing preferences, may have played a role in maintaining homeownership levels.
Federal interest rates have shown a significant impact on homeownership trends in this area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained stable at around 68-69%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), we saw a slight dip in homeownership to 67% in 2019. Interestingly, the homeownership rate rebounded to 70% in 2020 when interest rates dropped sharply to 0.38%, likely due to the increased affordability of mortgages.
Renter percentages in zip code 36037 have shown a slight upward trend, moving from 31% in 2013 to 34% in 2022. This increase in renters correlates with changes in average rent prices. In 2013, the average rent was $589, which increased to $690 by 2022, representing a 17.1% rise. The most significant jump in rent occurred between 2020 and 2021, when it increased from $686 to $742, a 8.2% rise in a single year. This substantial increase in rent might have contributed to the slight decrease in the renter population from 33% in 2019 to 30% in 2020, before rebounding to 34% in 2022 as the rental market adjusted.
Looking at the most recent data, the average home price in zip code 36037 for 2023 was $112,645, showing a slight decrease from 2022. However, in 2024, the average home price has increased to $114,175, indicating a recovery in the housing market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 36037 will continue to rise moderately, potentially reaching around $125,000 by 2029. This projection is based on the historical growth pattern and assumes relatively stable economic conditions. For rent prices, the forecast suggests a continued upward trend, potentially reaching an average of $800 per month by 2029, reflecting ongoing demand for rental properties in the area.
In summary, zip code 36037 has demonstrated resilience in homeownership rates despite rising home prices and fluctuating interest rates. The rental market has shown growth in both prices and the proportion of renters. The recent increase in federal interest rates may pose challenges for potential homebuyers, potentially leading to a slight shift towards renting in the coming years. However, the overall stability of the housing market in this area suggests that it will continue to adapt to changing economic conditions.
