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Zip Code 36264: Rising Home Values and Stable Ownership in Rural 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 36264, located in Heflin, Alabama, presents an interesting case study of homeownership and rental trends in a small urban area. Over the past decade, this region has experienced fluctuations in both homeownership rates and housing prices, reflecting broader economic changes and local market dynamics.
The homeownership rate in zip code 36264 has shown a slight decline from 2013 to 2022. In 2013, 76% of residents were homeowners, while by 2022, this figure had decreased to 75%. This minor shift coincides with significant changes in average home prices. The average home price in 2013 was $104,145, which steadily increased to $210,642 by 2022, representing a substantial 102% increase over this period. Despite this sharp rise in home values, the relatively stable homeownership rate suggests a resilient local housing market.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 36264. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable at around 75-76%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight dip in homeownership to 72% in 2017 and 2019, before recovering to 75% in 2022. This pattern indicates that while rising interest rates may have initially deterred some potential buyers, the local market adapted over time.
Renter percentages in zip code 36264 have shown a corresponding inverse relationship to homeownership rates. The proportion of renters increased from 24% in 2013 to a peak of 28% in 2017 and 2019, before settling back to 25% in 2022. Average rent prices have fluctuated over this period, starting at $737 in 2013, dropping to a low of $603 in 2017, and then rebounding to $664 by 2022. Interestingly, the peak in rental percentage coincided with the lowest average rent, suggesting that affordability may have attracted more renters during this period.
In 2023 and 2024, zip code 36264 experienced some notable changes in the housing market. The average home price in 2023 was $204,643, showing a slight decrease from the 2022 peak. However, by 2024, prices had rebounded to $210,035, nearly matching the 2022 level. This recovery occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates haven't appeared to significantly dampen the local housing market, indicating strong underlying demand or other favorable local economic factors.
Looking ahead, based on historical trends and current market conditions, we can project some potential scenarios for the next five years. Average home prices in zip code 36264 are likely to continue their upward trajectory, albeit at a more moderate pace. We might expect to see average home prices reaching around $230,000 to $240,000 by 2029. Rent prices, which have been more volatile, could stabilize and show gradual increases, potentially reaching an average of $700 to $750 per month by 2029.
In summary, zip code 36264 has demonstrated a resilient housing market over the past decade. Despite significant increases in home prices and fluctuations in interest rates, homeownership rates have remained relatively stable. The rental market has shown more variability, both in terms of renter percentages and average rents. Moving forward, the area is likely to see continued growth in home values and a stabilizing rental market, reflecting the overall economic health and attractiveness of Heflin, Alabama.
