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Zip Code 36345: Rising Home Values and Ownership Rates in Headland, 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 36345, located in Headland, Alabama, has experienced notable shifts in homeownership and housing market dynamics over the past decade. This area has seen a general trend of increasing homeownership rates, coupled with fluctuations in average home prices and average rent prices. The interplay between these factors provides insight into the local real estate market and community demographics.
The homeownership rate in zip code 36345 has shown a significant upward trend from 2013 to 2022. In 2013, the homeownership rate was 75%, which steadily increased to 83% by 2022. This rise in homeownership coincided with an overall increase in average home prices. From 2013 to 2022, average home prices rose from $135,975 to $201,619, representing a substantial 48.3% increase over this period. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $171,319 to $201,619, a 17.7% increase in just two years.
Federal interest rates have played a role in homeownership trends in zip code 36345. From 2013 to 2016, interest rates remained low, hovering around 0.1% to 0.4%. During this period, homeownership increased from 75% to 79%. As interest rates began to rise more significantly from 2017 to 2019, reaching 2.16% in 2019, homeownership continued to climb, reaching 86% in 2019. This suggests that other local factors may have outweighed the impact of rising interest rates on homeownership in this area.
The renter percentage in zip code 36345 has generally decreased as homeownership rates increased. In 2013, 25% of residents were renters, which declined to 17% by 2022. Despite this decrease in the renter population, average rent prices have shown an overall upward trend. Average rent increased from $680 in 2013 to $801 in 2022, a 17.8% rise. However, rent prices have fluctuated, with notable increases in 2015 ($740) and 2020 ($809), followed by decreases in subsequent years. These fluctuations may be attributed to changes in local housing supply and demand, as well as broader economic factors affecting the area.
In 2023 and 2024, average home prices in zip code 36345 continued to rise, reaching $206,870 in 2023 and $210,354 in 2024. This represents a 2.6% increase from 2022 to 2023 and a further 1.7% increase from 2023 to 2024. Concurrently, federal interest rates have significantly increased, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential 5-year trends for average home and rent prices in zip code 36345. Average home prices are likely to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach approximately $230,000 to $240,000 by 2029. For average rent prices, the trend suggests continued gradual increases, potentially reaching around $850 to $900 per month by 2029, assuming consistent economic conditions and housing demand in the area.
In summary, zip code 36345 has experienced a significant increase in homeownership rates from 2013 to 2022, rising from 75% to 83%. This trend has been accompanied by a substantial increase in average home prices, particularly in recent years. The renter population has decreased, while average rent prices have shown an overall upward trend with some fluctuations. The recent sharp increase in federal interest rates may influence future homeownership and housing price trends in the area. Moving forward, we can expect continued, though potentially moderated, growth in both average home prices and rent prices in zip code 36345.
