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Zip Code 36562: Rising Home Values and Shifting Ownership Trends in Perdido, 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 36562, located in Perdido, Alabama, presents an interesting case study of homeownership and rental trends in a small, rural community. Over the past decade, this area has experienced fluctuations in its ownership rates and housing prices, reflecting broader economic shifts and local dynamics. The homeownership rate in zip code 36562 has shown a slight decline over the years, dropping from 85% in 2013 to 79% in 2022. This trend coincides with a significant increase in average home prices, which rose from $100,851 in 2010 to $196,541 in 2022, representing a 94.9% increase over 12 years. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $146,524 to $196,541, a 34.1% increase in just two years.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2010 to 2015 saw historically low interest rates, ranging from 0.09% to 0.18%. During this time, homeownership rates remained relatively stable, hovering around 85%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, there was a corresponding decrease in homeownership rates, falling to 79% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The rental market in zip code 36562 has shown interesting trends as well. The percentage of renters increased from 14% in 2013 to 21% in 2022. Average rent prices have fluctuated over the years, rising from $622 in 2013 to a peak of $844 in 2017 and 2018, before settling at $717 in 2022. The population of the area has decreased from 922 in 2013 to 752 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, the average home prices in zip code 36562 continued to rise, reaching $202,533 in 2023 and $203,100 in 2024. This represents a modest increase of 3.3% from 2022 to 2024. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Looking ahead, based on the historical data and current trends, we can forecast potential scenarios for the next five years. Average home prices in zip code 36562 are likely to continue their upward trajectory, albeit at a more modest pace due to the higher interest rates. We might expect average home prices to reach around $225,000 to $230,000 by 2029. Average rent prices, which have shown more volatility, could stabilize or see slight increases, potentially reaching $750 to $800 per month by 2029.
In summary, zip code 36562 has experienced a gradual shift from a predominantly owner-occupied area to one with a growing rental market. The substantial increase in average home prices, coupled with rising interest rates, has likely contributed to this trend. Despite a decreasing population, the area has seen resilient property values, suggesting continued demand for housing in this rural Alabama community.
