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Zip Code 36526: Rising Home Values and Ownership Trends in Daphne, 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 36526, located in Daphne, Alabama, has experienced significant changes in homeownership rates and housing market dynamics over the past decade. This area has seen a notable increase in both population and average home prices, while maintaining a strong preference for homeownership among its residents. The homeownership rate in zip code 36526 has shown a remarkable upward trend, rising from 69% in 2013 to 76% in 2022. This increase in homeownership coincided with a substantial rise in average home prices, which grew from $173,118 in 2013 to $311,018 in 2022, representing a 79.7% increase over this period. The correlation between rising homeownership rates and increasing home prices suggests a strong demand for housing in this area, possibly driven by factors such as local economic growth and the desirability of the Daphne location.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 36526. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), the area saw a slight dip in homeownership from 69% to 66%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership in the area actually increased to 76%. This counterintuitive trend suggests that other local factors, such as job growth or quality of life improvements, may have had a stronger influence on homeownership decisions than interest rates alone.
Renter percentages in zip code 36526 have fluctuated inversely to homeownership rates, decreasing from 29% in 2013 to 24% in 2022. Despite this decline in the proportion of renters, average rent prices have steadily increased from $1,366 in 2013 to $1,451 in 2022, a 6.2% rise. This increase in rent prices, coupled with a decreasing percentage of renters, could indicate a tightening rental market with higher-quality or more desirable rental properties becoming available.
In 2023 and 2024, the housing market in zip code 36526 continued its upward trajectory. Average home prices reached $323,604 in 2023 and further increased to $327,594 in 2024, representing a 5.3% growth over these two years. This growth occurred despite significantly higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, suggesting a resilient local housing market that continues to attract buyers even in a higher interest rate environment.
Looking ahead, based on historical trends and current market conditions, we can expect the average home prices in zip code 36526 to continue rising, albeit at a potentially slower pace due to higher interest rates. A 5-year forecast suggests average home prices could reach approximately $370,000 to $390,000 by 2029. Average rent prices are also likely to increase, potentially reaching around $1,600 to $1,700 per month in the same timeframe, driven by ongoing demand and the area's growing population.
In summary, zip code 36526 in Daphne, Alabama, has demonstrated a robust housing market characterized by increasing homeownership rates, rising average home prices, and steady growth in rental costs. The area's ability to maintain strong homeownership levels and property values, even in the face of rising interest rates, indicates a desirable living location with potential for continued growth and investment opportunities in the real estate sector.
