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Zip Code 36530: Rising Home Values and Ownership Rates in Elberta, 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 36530, located in Elberta, Alabama, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, covering 102.28 square miles, has seen fluctuations in its population and housing market dynamics, reflecting broader economic trends and local developments.
The homeownership rate in zip code 36530 has shown a general upward trend, increasing from 74% in 2013 to 80% in 2022. This rise in homeownership coincided with significant growth in average home prices. In 2013, the average home price was $145,071, which steadily increased to $332,283 by 2022, representing a substantial 129% increase over this period. The most dramatic rise occurred between 2020 and 2021, when average home prices jumped from $245,564 to $300,138, a 22% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in this area. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. These low rates likely contributed to the increase in homeownership, making mortgage financing more affordable for potential buyers. The sharp rise in homeownership from 75% in 2017 to 81% in 2020 coincided with interest rates dropping from 1.83% in 2018 to 0.38% in 2020, illustrating the inverse relationship between interest rates and homeownership rates.
Renter percentages in zip code 36530 have generally decreased as homeownership rates increased. The renter-occupied percentage fell from 24% in 2013 to 20% in 2022. Despite this decrease, average rent prices have shown an overall upward trend. In 2013, the average rent was $797, which increased to $807 by 2022. However, this increase was not steady, with fluctuations observed throughout the years. For instance, average rent peaked at $909 in 2021 before declining to $807 in 2022. These rent price changes occurred against a backdrop of varying population levels, which ranged from a high of 8,146 in 2017 to a low of 6,883 in 2020.
In 2023 and 2024, the housing market in zip code 36530 continued to evolve. The average home price reached $347,857 in 2023 and further increased to $355,068 in 2024, showing a continued upward trajectory. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 36530 are likely to continue their upward trend over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and overall housing market dynamics. However, the rate of increase for both home prices and rents may moderate compared to the rapid growth seen in recent years.
In summary, zip code 36530 has experienced a significant increase in homeownership rates and average home prices over the past decade, influenced by favorable interest rates and local market conditions. While renter percentages have decreased, average rent prices have shown an overall upward trend. The recent rise in interest rates and continued growth in home prices suggest a potentially changing landscape for both homeowners and renters in this Alabama community.
