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Zip Code 36521: Rising Home Values and Ownership Rates in Chunchula, 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 36521, located in Chunchula, Alabama, has experienced significant shifts in homeownership rates and housing prices over the past decade. This area, spanning 132.54 square miles, has seen a notable increase in homeownership alongside fluctuating average home and rent prices.
The ownership percentage in zip code 36521 has shown a strong upward trend, increasing from 83% in 2013 to 91% in 2022. This substantial rise in homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $112,995, which grew consistently to reach $204,111 by 2022, representing an impressive 80.6% increase over nine years. This trend suggests a growing preference for homeownership in the area, possibly driven by the long-term investment potential of rising property values.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 1.83%), the most significant jumps in homeownership occurred in recent years when interest rates began to rise. For instance, homeownership increased from 84% in 2019 to 89% in 2020, and further to 91% in 2022, even as interest rates climbed from 2.16% in 2019 to 1.68% in 2022. This suggests that factors beyond interest rates, such as local economic conditions or housing market dynamics, may have played a more significant role in driving homeownership in this area.
Conversely, the percentage of renters in zip code 36521 has decreased from 17% in 2013 to 9% in 2022. This decline in renters has been accompanied by fluctuations in average rent prices. The average rent peaked at $1,079 in 2015 before experiencing a general downward trend, reaching $834 in 2022. This represents a 22.7% decrease in average rent over seven years. The declining renter population and falling rent prices could indicate a shift in housing preferences or economic factors encouraging homeownership in the area.
In 2023 and 2024, the housing market in zip code 36521 continued to evolve. The average home price rose to $213,026 in 2023 and further increased to $218,036 in 2024, showing a consistent upward trajectory. However, this growth has slowed compared to previous years, possibly influenced by the sharp rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024.
Looking ahead, predictive models suggest a continued but moderate increase in average home prices for zip code 36521 over the next five years. The rate of increase is expected to slow compared to the rapid growth seen in recent years, potentially stabilizing around 2-3% annual appreciation. Average rent prices, which have been declining, may start to stabilize or see slight increases as the rental market adjusts to the changing dynamics of homeownership in the area.
In summary, zip code 36521 has experienced a significant shift towards homeownership, with a corresponding increase in average home prices. The area has bucked national trends by showing increased homeownership even during periods of rising interest rates. The rental market has contracted, with both the percentage of renters and average rent prices decreasing. As we move forward, the housing market in this zip code is expected to continue evolving, with moderating home price growth and potential stabilization in the rental market.
