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Zip Code 36083: Average Home Values and Ownership in Franklin, 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 36083, located in Franklin, Alabama, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates and notable trends in average home and rent prices. The following analysis explores these trends, focusing on the interplay between ownership percentages, average home prices, and average rent prices in this dynamic community.
In zip code 36083, homeownership rates have remained relatively stable, with slight fluctuations between 2013 and 2022. The percentage of owner-occupied housing units stood at 60% in 2013 and maintained this level through 2022, with minor variations in between. Average home prices in the area have shown a steady increase during this period. From 2016 to 2022, average home prices rose from $62,196 to $91,215, representing a significant 46.7% increase over six years.
The relationship between federal interest rates and homeownership rates in zip code 36083 appears to follow the general trend of lower interest rates encouraging homeownership. For instance, in 2020, when the federal interest rate dropped to 0.38%, the homeownership rate remained steady at 60%. However, as interest rates began to rise in 2022 to 1.68%, there was a slight decrease in homeownership to 58%, suggesting that higher interest rates may have made home purchases less affordable for some residents.
Regarding rental trends, the percentage of renter-occupied housing units in zip code 36083 has shown slight fluctuations, ranging from 38% to 42% between 2013 and 2022. Average rent prices have generally increased over this period, rising from $681 in 2013 to $653 in 2022. Despite the overall upward trend, there were some fluctuations, with the average rent reaching a peak of $674 in 2021 before slightly decreasing in 2022.
Looking at the most recent data for 2023 and 2024, some interesting developments in the housing market of zip code 36083 are evident. The average home price in 2023 was $87,636, showing a slight decrease from the 2022 figure of $91,215. This downward trend continued into 2024, with average home prices further declining to $83,718. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the area.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in zip code 36083 may continue to experience moderate growth, albeit at a slower pace than seen in previous years due to higher interest rates. Average rent prices are expected to maintain their upward trajectory, potentially reaching around $700-$750 by 2029, driven by ongoing demand for rental properties in the area.
In summary, zip code 36083 has demonstrated resilience in its homeownership rates despite fluctuations in the housing market. The area has seen substantial growth in average home prices from 2016 to 2022, followed by a recent cooling trend in 2023 and 2024. Rental markets have shown steady growth in average rent prices, with some minor fluctuations. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics at work in this local real estate market. As we look to the future, moderate growth in both home prices and rent prices is anticipated, shaped by broader economic factors and local market conditions.
