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Zip Code 36108: Rising Home Values and Ownership in Montgomery, 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 36108, located in Montgomery, Alabama, has experienced significant demographic and housing market changes over the past decade. This area has seen a notable shift in homeownership rates and fluctuations in average home and rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 36108 has shown a steady increase from 53% in 2013 to 61% in 2022. This upward trend in homeownership has occurred alongside fluctuations in average home prices. In 2013, the average home price was $39,405, which rose to $60,320 by 2022, representing a substantial 53% increase over this period. The most significant year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $50,231 to $55,097, a 9.7% rise.
Federal interest rates have played a crucial role in shaping homeownership trends in this zip code. The period from 2013 to 2022 was characterized by historically low interest rates, ranging from 0.11% in 2013 to 1.68% in 2022. These low rates likely contributed to the increasing homeownership rate by making mortgage financing more affordable for potential buyers. The relationship between low interest rates and rising homeownership is particularly evident in the years 2020 and 2021, when interest rates dropped to 0.38% and 0.08% respectively, coinciding with a continued increase in homeownership rates.
As homeownership increased, the percentage of renters in zip code 36108 decreased from 47% in 2013 to 39% in 2022. Despite this decline in the renter population, average rent prices showed an upward trend. The average rent increased from $688 in 2013 to $777 in 2022, a 12.9% rise. This increase in rent prices occurred even as the overall population of the zip code declined from 20,017 in 2013 to 14,996 in 2022, suggesting that other factors, such as housing quality improvements or broader market pressures, may have influenced rent prices.
In 2023 and 2024, the housing market in zip code 36108 continued to evolve. The average home price reached $63,612 in 2023 and slightly increased to $63,748 in 2024, showing a stabilization in price growth. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial shift from the low-rate environment of previous years.
Looking ahead, predictive models suggest that average home prices in zip code 36108 may continue to rise moderately over the next five years, potentially reaching around $70,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $850 per month in the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 36108 has experienced a notable increase in homeownership rates, rising average home prices, and increasing rent costs over the past decade. The interplay between federal interest rates, local population dynamics, and broader economic factors has shaped these trends. As the area moves forward, it is likely to see continued, albeit moderate, growth in both home values and rental prices, reflecting ongoing changes in the local housing market.
