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Zip Code 36051: Rising Home Values and Ownership in Marbury, 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 36051, located in Marbury, Alabama, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a notable increase in both population and homeownership, coupled with rising average home and rent prices. The ownership percentage in zip code 36051 has shown a strong upward trend, particularly in recent years. In 2013, the homeownership rate was 79%, which increased to 88% by 2022. This substantial rise in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $116,644, which steadily rose to $200,289 by 2022, representing a 71.7% increase over this period.
Federal interest rates have played a crucial role in shaping homeownership trends in this area. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates fluctuated between 74% and 79%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates surprisingly continued to increase, reaching 88% by 2022. This suggests that other factors, such as local economic conditions or housing market dynamics, may have had a stronger influence on homeownership in this zip code than national interest rates.
The renter percentage in zip code 36051 has inversely mirrored the homeownership trend, decreasing from 21% in 2013 to 12% in 2022. Despite this decline in the renter population, average rent prices have shown a general upward trend. In 2013, the average rent was $861, which increased to $1,132 by 2022, representing a 31.5% increase. This rise in rent prices occurred despite the growing preference for homeownership, possibly indicating a shortage of rental properties or an increase in the quality of available rentals.
In 2023 and 2024, we see a slight correction in the housing market for zip code 36051. The average home price decreased from $200,289 in 2022 to $197,163 in 2023, and further to $195,531 in 2024. This represents a modest 2.4% decrease over two years. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slight cooling in home prices.
Looking ahead, based on the historical data and recent trends, we can forecast the following 5-year trends for zip code 36051: 1. Average home prices are likely to stabilize and potentially show modest growth, possibly reaching around $210,000 by 2029. 2. Average rent prices are expected to continue their upward trajectory, potentially reaching $1,300-$1,400 by 2029. 3. Homeownership rates may plateau or slightly decrease from the current high of 88% due to the recent increase in interest rates, possibly settling around 85-86% by 2029.
In summary, zip code 36051 has demonstrated a robust housing market with increasing homeownership rates and rising property values over the past decade. The area has bucked national trends by maintaining high homeownership rates despite rising interest rates. However, the recent slight decrease in home prices and the significant rise in interest rates suggest a potential moderation in the market's growth trajectory in the coming years.
