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Zip Code 36511: Rising Home Values and Complete Homeownership in Bon Secour, 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 36511, located in Bon Secour, Alabama, has experienced significant changes in its demographic and housing landscape over the past decade. This rural area has seen a notable increase in population and homeownership rates, coupled with rising average home prices in recent years. The ownership percentage in this zip code has shown a strong upward trend, particularly in the latter half of the observed period. In 2013, the homeownership rate was 82%, which increased to 92% by 2020. Remarkably, by 2021 and 2022, the area reached 100% homeownership. This dramatic increase in homeownership coincides with a rise in average home prices. The average home price in 2021 was $199,935, which increased to $220,778 in 2022, representing a 10.4% increase in just one year.
The relationship between federal interest rates and homeownership rates in this area appears to follow the general trend of lower interest rates encouraging higher homeownership. For instance, the period from 2013 to 2020 saw relatively low federal interest rates, ranging from 0.09% to 2.16%. During this time, homeownership rates in the zip code increased from 82% to 92%. The ultra-low interest rates in 2020 and 2021 (0.38% and 0.08% respectively) may have contributed to the area reaching 100% homeownership by 2021.
Renter percentages in zip code 36511 have shown a corresponding decline as homeownership increased. In 2013, the renter-occupied percentage was 18%, which decreased to 8% by 2020. By 2021 and 2022, there were no renters recorded in the area.
In 2023 and 2024, we see a continuation of the upward trend in average home prices. The average home price in 2023 was $235,983, a 6.9% increase from 2022. In 2024, it further increased to $245,292, representing a 3.9% rise from 2023. This growth occurs despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This suggests that other factors, such as local economic conditions or housing supply constraints, may be influencing home prices in this area.
Looking ahead, based on the observed trends and current economic conditions, we can forecast potential scenarios for the next five years. If the current trajectory continues, we might expect average home prices in zip code 36511 to continue rising, albeit at a potentially slower rate due to higher interest rates. Assuming an average annual growth rate of 4% (which is lower than the recent years but accounts for higher interest rates), we could see average home prices reach approximately $298,000 by 2029.
In summary, zip code 36511 has experienced a remarkable shift towards complete homeownership, accompanied by steady increases in average home prices. The area has defied the typical inverse relationship between interest rates and home prices in recent years, suggesting strong local demand for housing. As the community continues to evolve, it will be interesting to observe how these trends develop, particularly in light of changing economic conditions and interest rates.
