Zip Code 36426: Rising Home Values and Shifting Ownership Trends in Brewton, Alabama
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Zip code 36426, located in Brewton, Alabama, has shown interesting dynamics in homeownership and housing market trends over the past decade. This area, covering 532.01 square miles, has experienced fluctuations in both ownership rates and housing prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 36426 has seen a slight decline over the years, starting at 75% in 2013 and settling at 72% in 2022. This trend has been accompanied by a steady increase in average home prices. In 2012, the average home price was $82,747, which rose to $134,851 by 2022, representing a significant 63% increase over a decade. This inverse relationship between homeownership rates and home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 73%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a corresponding decrease in homeownership rates, dropping to 69% by 2019. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Renter percentages in zip code 36426 have shown a gradual increase, rising from 24% in 2013 to 28% in 2022. This trend has been accompanied by notable fluctuations in average rent prices. The average rent increased from $582 in 2013 to a peak of $725 in 2021, before slightly decreasing to $676 in 2022. The population in the area has remained relatively stable, with minor fluctuations between 16,272 and 16,679 residents from 2020 to 2022. This stability in population coupled with increasing renter percentages suggests a shift in housing preferences or affordability constraints in the area.
Looking at the most recent data, the average home price in zip code 36426 reached $140,301 in 2023 and further increased to $143,667 in 2024. This continued upward trend in home prices is occurring alongside a significant rise in interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may pose challenges for potential homebuyers, potentially impacting future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 36426 will continue to rise, potentially reaching around $160,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching approximately $750 per month by 2029, assuming the current economic conditions and population trends persist.
In summary, zip code 36426 has experienced a gradual shift towards renting, with homeownership rates decreasing slightly as home prices have significantly increased. The interplay between federal interest rates, housing affordability, and local market conditions has shaped these trends. As we look to the future, the area is likely to see continued growth in property values and rental prices, potentially further impacting the balance between homeownership and renting in this Alabama community.
