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Zip Code 36532: Rising Home Values and Ownership in Fairhope's Coastal Community
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 36532, located in Fairhope, Alabama, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a notable increase in both population and average home prices, with a general trend towards higher homeownership rates.
The homeownership percentage in zip code 36532 has shown a steady increase from 2013 to 2022. In 2013, the homeownership rate was 77%, which gradually rose to 82% by 2022. This upward trend coincided with a substantial rise in average home prices. In 2013, the average home price was $222,672, and by 2022, it had more than doubled to $449,018. This correlation suggests that as property values increased, more residents were motivated to invest in homeownership, possibly viewing it as a sound financial decision.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, interest rates remained relatively low, ranging from 0.11% to 0.40%. During this period, homeownership rates in zip code 36532 remained stable at around 76%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a noticeable increase in homeownership, reaching 80% by 2019. This trend could be attributed to residents rushing to purchase homes before interest rates potentially increased further.
Renter percentages in zip code 36532 have shown an inverse relationship to homeownership rates, decreasing from 23% in 2013 to 18% in 2022. Despite this decline, average rent prices have steadily increased. In 2013, the average rent was $1,256, rising to $1,320 by 2022. This upward trend in rent prices, coupled with the area's population growth from 30,920 in 2013 to 37,230 in 2022, suggests a competitive rental market despite the decreasing percentage of renters.
In 2023, the average home price in zip code 36532 reached $469,430, with interest rates rising sharply to 5.02%. The trend continued into 2024, with average home prices further increasing to $477,206 and interest rates climbing to 5.33%. These figures represent a significant jump in both housing costs and financing expenses compared to previous years.
Looking ahead, predictive models suggest that average home prices in zip code 36532 are likely to continue their upward trajectory 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 population growth and the overall rise in housing costs. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, zip code 36532 has demonstrated a clear trend towards increased homeownership, rising property values, and higher rent prices over the past decade. The interplay between federal interest rates, population growth, and housing market dynamics has shaped these trends, resulting in a competitive and evolving real estate landscape in this Alabama community.
