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Zip Code 36273: Rising Home Values and Ownership Rates in Ranburne, 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
Ranburne, located in zip code 36273 in Alabama, has experienced significant shifts in its housing market over the past decade. This small town, with a population of 2,711 in 2022, has seen notable changes in homeownership rates, average home prices, and average rent prices.
The homeownership rate in Ranburne has shown a strong upward trend, particularly in recent years. In 2013, 74% of residents were homeowners, and this percentage steadily increased to 85% by 2022. This substantial rise in homeownership coincided with a significant increase in average home prices. The average home price in the area rose from $116,910 in 2013 to $234,483 in 2022, representing a 100.6% increase over this period. The most dramatic price increases occurred between 2020 and 2022, with average home prices jumping from $174,678 to $234,483, a 34.2% increase in just two years.
The trend in homeownership rates appears to have been influenced by federal interest rates. As interest rates remained historically low from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership became increasingly attractive due to more affordable financing options. This period of low interest rates coincided with the steady rise in homeownership rates observed in Ranburne.
Conversely, the percentage of renters in Ranburne decreased from 26% in 2013 to 15% in 2022. Despite this decline in the renter population, average rent prices showed some volatility. Average rent increased from $726 in 2013 to a peak of $752 in 2017, before declining to $583 in 2022. This 22.5% decrease in average rent from 2017 to 2022 occurred despite the overall decrease in the renter population, suggesting other factors such as local economic conditions or housing supply may have influenced rent prices.
In 2023 and 2024, the housing market in Ranburne showed signs of stabilization. The average home price slightly decreased to $232,086 in 2023 before rising to $236,081 in 2024. This represents a modest 1.7% increase from 2022 to 2024, a significant slowdown compared to the rapid price growth seen in previous years. Notably, federal interest rates increased substantially to 5.02% in 2023 and 5.33% in 2024, which may have contributed to the moderation in home price growth.
Looking ahead, predictive models suggest that average home prices in Ranburne may continue to rise, but at a more moderate pace over the next five years. The recent stabilization in prices and higher interest rates could lead to a more balanced market. Average rent prices are forecasted to potentially increase as the supply of rental properties may be limited due to the high homeownership rate.
In summary, Ranburne has experienced a significant increase in homeownership rates and average home prices over the past decade, particularly during periods of low interest rates. The rental market has seen a decrease in the percentage of renters and fluctuations in average rent prices. Recent data indicates a potential stabilization in the housing market, with more moderate price growth expected in the coming years.
