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Zip Code 36205 in Anniston, Alabama: Average Home Values and Ownership Trends Amidst Population Growth
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 36205, located in Anniston, Alabama, has experienced significant demographic and housing market changes 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 conditions.
The homeownership rate in zip code 36205 has shown considerable variability from 2013 to 2022. In 2013, the homeownership rate was 39%, which increased to 63% by 2018, marking a substantial rise in property ownership. However, this trend reversed in subsequent years, with the homeownership rate declining to 45% by 2022. This fluctuation corresponds interestingly with changes in average home prices. In 2013, the average home price was $190,436, which steadily increased to $276,251 by 2022, representing a 45% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 36205. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This coincided with an increase in homeownership rates from 39% in 2013 to 58% in 2017. As interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, we observed a corresponding decline in homeownership rates, dropping to 45% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in zip code 36205 have also shown interesting trends. In 2013, 60% of residents were renters, with an average rent of $387. By 2022, the renter percentage had decreased slightly to 54%, while the average rent had increased significantly to $707, representing an 83% increase over nine years. This substantial rise in average rent prices occurred despite fluctuations in the local population, which grew from 209 in 2013 to 425 in 2022, potentially indicating increased demand for rental properties in the area.
Looking at the most recent data for 2023 and 2024, we see a slight moderation in the housing market. The average home price in zip code 36205 decreased marginally from $276,251 in 2022 to $275,343 in 2023, and further to $272,471 in 2024. This slight downturn coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially cooling the housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 36205 may continue to experience moderate growth, albeit at a slower pace than observed in previous years. This forecast is based on the historical trend of rising home values in the area, tempered by the current high interest rate environment. For average rent prices, we project continued upward movement, driven by the area's growing population and the recent trend of rising rental costs.
In summary, zip code 36205 has experienced significant shifts in its housing market over the past decade. Key discoveries include the volatile nature of homeownership rates, the substantial increase in both average home prices and average rent prices, and the apparent influence of federal interest rates on these trends. The recent stabilization of home prices, coupled with rising interest rates, suggests a potential cooling of the market, which may impact future homeownership rates and property values in this Anniston neighborhood.
