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Zip Code 36525: Average Home Values and Ownership Trends in Creola, 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 36525, located in Creola, Alabama, has experienced fluctuating demographics and housing trends over the past decade. This area, covering approximately 29.9 square miles, has seen significant changes in its population, homeownership rates, and average home and rent prices.
The homeownership rate in zip code 36525 has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 76%, which decreased to 71% by 2022. This trend coincides with changes in average home prices. In 2013, the average home price was $111,278, which steadily increased to $190,587 by 2022, representing a substantial 71.3% increase over this period. The most significant annual increase occurred between 2020 and 2021, with average home prices jumping from $153,540 to $170,824, a 11.3% rise in a single year.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained very low, ranging from 0.09% to 0.4%, which likely contributed to the relatively stable homeownership rates during this period. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we see a corresponding decrease in homeownership rates from 72% in 2017 to 69% in 2019. The sharp drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) did not immediately reverse the homeownership decline, possibly due to other economic factors at play during the pandemic.
The renter percentage in zip code 36525 has generally increased from 24% in 2013 to 29% in 2022, inversely mirroring the homeownership trend. Average rent prices have shown volatility over this period. In 2013, the average rent was $872, which increased to a peak of $958 in 2018 before declining to $704 in 2022. This represents a 19.3% decrease in average rent from 2013 to 2022, despite the overall increase in the renter population. The population fluctuations, from 944 in 2013 to 1,023 in 2022, may have influenced these rental market dynamics.
In 2023 and 2024, the housing market in zip code 36525 continued to evolve. The average home price reached $201,966 in 2023 and further increased to $205,605 in 2024, showing a continued upward trend. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in zip code 36525 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices, which have been declining, may stabilize or begin to increase again as the rental market adjusts to changing economic conditions and housing demand.
In summary, zip code 36525 has experienced a gradual shift towards more renters and fewer homeowners over the past decade, accompanied by significant increases in average home prices and fluctuations in rent prices. The interplay between federal interest rates, local economic factors, and population changes has shaped these trends, creating a dynamic housing market in this Alabama community.
