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Zip Code 36528: Dauphin Island's Rising Home Values and Ownership Rates
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 36528, encompassing Dauphin Island in Alabama, presents a unique coastal community with distinctive real estate trends. This area has seen significant shifts in homeownership rates and property values over the past decade, reflecting broader economic changes and local market dynamics. The ownership percentage in this zip code has shown a remarkable upward trend, particularly in recent years. In 2013, the homeownership rate stood at 85%, and by 2022, it had climbed to an impressive 96%. This substantial increase in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $202,639, and by 2022, it had more than doubled to $465,102. This correlation suggests that as property values increased, more residents were motivated to invest in homeownership, possibly viewing it as a sound financial decision in a rising market.
The relationship between federal interest rates and homeownership rates in zip code 36528 shows an interesting pattern. Despite fluctuations in interest rates, homeownership rates have consistently increased. For instance, when interest rates were at a low of 0.08% in 2021, homeownership was at 95%. Interestingly, even as rates rose to 1.68% in 2022, homeownership continued to climb to 96%. This trend suggests that local factors, such as the desirability of coastal property, may have a stronger influence on homeownership decisions in this area than national interest rate trends.
Conversely, the percentage of renters in zip code 36528 has decreased significantly over the years, from 15% in 2013 to just 4% in 2022. This decline in renters coincides with fluctuations in average rent prices. In 2013, the average rent was $1,085, peaking at $1,125 in 2017, before decreasing to $1,117 in 2022. The declining renter population, despite relatively stable rent prices, could be attributed to the strong preference for homeownership in this area, possibly driven by the appreciation of property values.
Looking at the most recent data, the average home price in zip code 36528 reached $484,357 in 2023 and further increased to $488,157 in 2024. This continued appreciation occurs despite higher interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures indicate a robust and resilient housing market in the area, with property values continuing to rise even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices in zip code 36528, albeit at a potentially slower rate due to higher interest rates. Average rent prices may see moderate increases as the rental market becomes more competitive with fewer available units. However, the strong preference for homeownership is likely to persist, potentially keeping rental demand relatively low.
In summary, zip code 36528 has experienced a significant shift towards homeownership, with property values more than doubling over the past decade. The area has shown resilience to national economic factors, with local market dynamics playing a crucial role in shaping real estate trends. The continued rise in home prices, even in the face of higher interest rates, suggests a sustained demand for property in this coastal community.
