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Zip Code 36206: Rising Home Values and Shifting Ownership in Saks, 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 36206, located in Saks, Alabama, has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown resilience in its housing market, with a general trend towards increasing property values and a shift in the balance between owners and renters.
The homeownership rate in zip code 36206 has shown some variability over the years. In 2013, the ownership rate stood at 70%, which increased to 74% by 2016 and 2019. However, by 2022, there was a noticeable decline to 66%. This trend coincides with changes in average home prices. In 2013, the average home price was $90,918, which rose to $140,890 by 2022, representing a substantial increase of 55% over this period. The most significant jump occurred between 2020 and 2021, when average home prices surged from $115,382 to $129,695, a 12.4% increase in just one year.
Federal interest rates have played a role in shaping homeownership trends in this zip code. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates increased from 70% to 72%. As interest rates began to rise more significantly from 2016 onwards, reaching 1.68% in 2022, we observed a corresponding decline in homeownership rates to 66%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in zip code 36206 have shown an inverse relationship to homeownership rates, naturally increasing as ownership rates decreased. The renter population grew from 29% in 2013 to 34% in 2022. Interestingly, average rent prices have not shown a consistent upward trend despite this increase in demand. In 2013, the average rent was $647, which peaked at $813 in 2018 before declining to $800 in 2022. This fluctuation in rent prices, despite the increasing renter population, could be attributed to various factors including local economic conditions and housing supply changes.
Looking at the most recent data, the average home price in zip code 36206 for 2023 was $140,902, showing a marginal increase from 2022. In 2024, the average home price has risen further to $143,005, indicating a continuing upward trend in property values. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and property demand in the area.
Applying predictive models to forecast 5-year trends, we anticipate a continued gradual increase in average home prices, potentially reaching around $155,000 by 2029. Average rent prices are expected to stabilize and potentially increase moderately, possibly reaching $850-$900 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 36206 has demonstrated a dynamic housing market over the past decade. The area has seen a general increase in property values, with average home prices rising by over 50% from 2013 to 2022. Homeownership rates have fluctuated, showing sensitivity to changes in federal interest rates. The renter population has grown, but average rent prices have not shown a consistent upward trend. Recent data shows continuing growth in home values, despite rising interest rates, suggesting a resilient local real estate market.
