Loading Content...
Zip Code 36305: Rising Home Values and Ownership Rates in Dothan, Alabama
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 36305, located in Dothan, Alabama, has shown significant changes in homeownership rates and housing market dynamics over the past decade. This area has experienced a steady increase in homeownership, coupled with notable fluctuations in average home prices and average rent rates.
The trend of homeownership in zip code 36305 has been consistently upward since 2013. The percentage of owner-occupied housing units rose from 67% in 2013 to 71% in 2022, indicating a growing preference for homeownership in the area. This increase in ownership coincided with a substantial rise in average home prices. In 2013, the average home price was $168,829, which grew to $240,316 by 2022, representing a 42.3% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally inverse pattern. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 2.16%, homeownership rates increased. This trend aligns with the economic principle that lower interest rates make mortgages more affordable, thereby encouraging homeownership.
Conversely, the percentage of renters in zip code 36305 has decreased from 33% in 2013 to 29% in 2022. Despite this decline in the renter population, average rent prices have shown a significant upward trend. The average rent increased from $616 in 2013 to $1,018 in 2022, a 65.3% increase. This substantial rise in rent prices, coupled with a decreasing renter population, suggests a tightening rental market, possibly due to limited rental inventory or increasing property values.
Looking at the most recent data, the average home price in zip code 36305 reached $250,101 in 2023 and further increased to $255,359 in 2024. This continued upward trajectory in home prices occurs alongside a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying decisions in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 36305 will continue to rise, albeit at a potentially slower rate due to higher interest rates. The average home price could reach approximately $280,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,200 per month within the next five years, driven by the area's growing population and the trend of rising property values.
In summary, zip code 36305 has demonstrated a strong trend towards homeownership, with a concurrent increase in both average home prices and average rent rates. The area has shown resilience in its housing market, with consistent growth despite fluctuations in the broader economic environment. The continued rise in both ownership rates and housing costs suggests a robust and desirable local real estate market, though future trends may be moderated by rising interest rates.
