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Zip Code 36250: Alexandria, Alabama - High Homeownership Rates Amid Rising Home Values
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 36250, located in Alexandria, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has maintained a high rate of owner-occupied housing, with average home prices showing a general upward trend despite some fluctuations.
The homeownership rate in zip code 36250 has remained consistently high, ranging from 83% to 92% between 2013 and 2022. Average home prices have shown a significant increase during this period. In 2010, the average home price was $125,750, which rose to $196,165 by 2022, representing a 56% increase over 12 years. Notably, there was a substantial jump in average home prices from $138,451 in 2016 to $181,458 in 2021, a 31% increase in just five years.
Federal interest rates have played a role in homeownership trends in this area. From 2010 to 2015, interest rates remained exceptionally low, hovering around 0.1% to 0.18%. During this period, homeownership rates in zip code 36250 were high, reaching 88% in 2013. As interest rates began to rise from 2016 onwards, there was a slight decrease in homeownership, dropping to 83% in 2018. However, when interest rates plummeted again in 2020 and 2021 to 0.38% and 0.08% respectively, homeownership rates rebounded, reaching 92% in 2020.
Renter percentages in zip code 36250 have fluctuated between 8% and 12% from 2013 to 2022. Average rent prices have shown a steady increase during this period. In 2013, the average rent was $633, which rose to $835 by 2022, a 32% increase over nine years. The population in this zip code has remained relatively stable, fluctuating between 3,747 and 4,419 residents during this period, which may have contributed to the gradual increase in rent prices.
In 2023, the average home price in zip code 36250 reached $199,974, with federal interest rates at 5.02%. Moving into 2024, the average home price has slightly increased to $200,753, while federal interest rates have risen to 5.33%. This represents a continued upward trend in home prices, albeit at a slower pace compared to previous years, possibly influenced by the higher interest rates.
Looking ahead, based on the historical trends and current economic conditions, we can expect the average home prices in zip code 36250 to continue their upward trajectory, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach around $225,000 to $235,000. Average rent prices are also likely to continue their upward trend, potentially reaching $950 to $1,000 by 2029.
In summary, zip code 36250 has maintained high homeownership rates despite fluctuations in the housing market. The area has seen significant growth in average home prices and steady increases in average rent prices. The interplay between federal interest rates and homeownership rates has been evident, with lower rates generally corresponding to higher homeownership. As we move forward, the housing market in this zip code is poised for continued growth, albeit at a more moderate pace than seen in recent years.
