Loading Content...
Zip Code 36576: Rising Home Values and Stable Ownership in Silverhill, Alabama
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 36576, located in Silverhill, Alabama, has experienced significant demographic and housing market changes over the past decade. This area has seen a notable increase in population density and fluctuations in homeownership rates, accompanied by substantial growth in average home prices and varying trends in average rent prices.
The homeownership rate in zip code 36576 has shown resilience, maintaining a relatively high level despite fluctuations. In 2013, the homeownership rate stood at 69%, and by 2022, it slightly increased to 73%. During this period, average home prices demonstrated a consistent upward trend. In 2013, the average home price was $134,507, and by 2022, it had more than doubled to $283,456, representing a significant 110.7% increase over nine years. This robust appreciation in home values occurred despite variations in federal interest rates, which ranged from near-zero levels to over 5% during this period.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite the Federal Reserve's policy of maintaining low interest rates from 2013 to 2021 (ranging from 0.08% to 0.4%), homeownership rates remained relatively stable, fluctuating between 65% and 74%. This suggests that factors beyond interest rates, such as local economic conditions and housing supply, played significant roles in homeownership decisions in this area.
Renter percentages in zip code 36576 have shown inverse correlations with homeownership rates, as expected. The renter population peaked at 34% in 2016 when the homeownership rate dipped to 65%. Interestingly, average rent prices did not always move in tandem with renter percentages. For instance, the average rent price decreased from $1,000 in 2015 to $849 in 2017, despite a slight increase in the renter population. By 2022, the average rent had risen to $918, while the renter percentage stood at 27%, down from its peak in 2016.
In 2023 and 2024, average home prices in zip code 36576 continued their upward trajectory, reaching $292,737 in 2023 and $298,068 in 2024. This represents a 3.3% increase from 2022 to 2023 and a further 1.8% rise from 2023 to 2024. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, marking a significant increase from the near-zero rates of the early 2020s.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in average home prices for zip code 36576 over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $330,000 to $350,000 by 2029. Average rent prices are likely to continue their upward trend as well, potentially reaching $1,100 to $1,200 per month within the same timeframe, influenced by population growth and housing demand in the area.
In summary, zip code 36576 has demonstrated strong homeownership rates and significant appreciation in average home values over the past decade. The area has shown resilience in maintaining high homeownership levels despite fluctuations in interest rates and economic conditions. The rental market, while smaller, has also seen growth, with rent prices generally trending upward. These trends, coupled with consistent population growth, suggest a robust and dynamic housing market in this Alabama town for the foreseeable future.
