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Zip Code 36088: Home Values and Ownership Trends in Tuskegee's Historic District
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 36088, located in Tuskegee, Alabama, has experienced significant demographic and housing market changes over the past decade. This area, known for its rich history and connection to the Tuskegee Institute, has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends and local market dynamics.
The homeownership rate in zip code 36088 has shown notable variability from 2013 to 2022. In 2013, the area had an even split between owners and renters at 50% each. By 2020, homeownership peaked at 55%, but then declined to 47% by 2022. This fluctuation coincides with changes in average home prices, which have shown a consistent upward trend since data became available in 2016. The average home price rose from $52,530 in 2016 to $76,608 in 2022, representing a substantial 45.8% increase over six years.
Federal interest rates appear to have influenced homeownership rates in the area. The period of historically low interest rates from 2013 to 2016, ranging from 0.09% to 0.40%, coincided with relatively stable homeownership rates around 46%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a slight increase in homeownership to 48% in 2019. Interestingly, the sharp drop in interest rates to 0.08% in 2021 corresponded with a spike in homeownership to 54%, likely due to more affordable financing options.
Renter percentages have generally mirrored the inverse of homeownership trends. The rental market saw its highest share at 55% in 2014 and 2017. Average rent prices have steadily increased from $607 in 2013 to $737 in 2022, a 21.4% increase. This rise in rent prices occurred despite a population decline from 2,940 in 2013 to 2,939 in 2022, suggesting that other factors such as housing supply constraints or improved rental property quality may have influenced prices.
In 2023 and 2024, we see a continuation of the upward trend in average home prices, with values reaching $77,623 in 2023 and slightly decreasing to $76,245 in 2024. This comes alongside a sharp increase in federal interest rates, rising to 5.02% in 2023 and 5.33% in 2024, marking a significant shift from the low-rate environment of previous years.
Looking ahead, predictive models suggest that average home prices in zip code 36088 may continue to rise moderately over the next five years, potentially reaching around $85,000 by 2029. Rent prices are also expected to increase, albeit at a slower pace, potentially approaching $800 per month by 2029. These projections assume relatively stable economic conditions and continued demand for housing in the area.
In summary, zip code 36088 has experienced a volatile housing market with shifting homeownership rates, steadily increasing home prices, and rising rent costs. The interplay between federal interest rates, local economic conditions, and housing affordability has significantly influenced these trends. As the area moves forward, balancing housing affordability with market growth will be crucial for maintaining a diverse and stable community.
