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Zip Code 36066: Rising Home Values and Shifting Ownership Patterns in Prattville, 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 36066, located in Prattville, Alabama, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 36066 has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 65%, which decreased to 56% by 2019. However, there was a slight recovery to 62% in 2022. During this same period, average home prices in the area have steadily increased. In 2013, the average home price was $170,521, which rose to $243,569 by 2022, representing a substantial 42.8% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates stabilized at 60%. This stability in homeownership during a period of low interest rates aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in zip code 36066 have generally increased from 2013 to 2022, inversely mirroring the homeownership trend. The renter percentage rose from 35% in 2013 to a peak of 44% in 2019, before settling at 38% in 2022. Average rent prices have shown some fluctuation but have generally increased over this period. In 2013, the average rent was $1,328, which increased to $1,376 by 2022, a 3.6% rise. It's worth noting that the population of the zip code has grown from 18,749 in 2013 to 21,651 in 2022, which may have contributed to the increased demand for rental properties.
Looking at the most recent data, the average home price in zip code 36066 reached $255,799 in 2023 and further increased to $260,565 in 2024. This represents a continued upward trend in home values. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact homebuying affordability and market dynamics in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 36066 will continue to rise, albeit at a potentially slower rate due to higher interest rates. The average home price could potentially reach around $290,000 to $300,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,500 to $1,600 per month by 2029, driven by population growth and potential shifts towards renting if high interest rates persist.
In summary, zip code 36066 has experienced a gradual shift towards renting over the past decade, with homeownership rates declining and then partially recovering. Average home prices have shown consistent growth, outpacing the increase in average rent prices. The area's population growth, coupled with broader economic factors like interest rates, has played a significant role in shaping these housing market trends. Moving forward, the interplay between interest rates, population growth, and housing supply will likely continue to influence homeownership rates and property values in this Prattville, Alabama zip code.
