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Zip Code 36695: Rising Home Values and Declining Ownership Rates in Mobile, 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 36695, located in Mobile, Alabama, has experienced significant demographic and housing market changes over the past decade. This area has seen a gradual shift in homeownership rates and notable fluctuations in average home and rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 36695 has shown a steady decline from 2013 to 2022. In 2013, 73% of housing units were owner-occupied, but by 2022, this figure had decreased to 65%. Conversely, the percentage of renter-occupied units increased from 27% to 35% during the same period. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $159,907, which rose to $260,384 by 2022, representing a 62.8% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code follows a well-established pattern. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 70-73%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, dropping from 69% in 2017 to 65% in 2022. This trend suggests that rising interest rates may have contributed to making homeownership less affordable for some residents.
The renter population in zip code 36695 has grown alongside average rent prices. In 2013, 27% of housing units were renter-occupied, with an average rent of $1,105. By 2022, the renter percentage had increased to 35%, while the average rent rose to $1,157, a 4.7% increase. This relatively modest increase in rent prices compared to the significant rise in home prices may have contributed to the growing preference for renting in the area. Additionally, the population growth from 45,092 in 2013 to 49,848 in 2022 likely increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 36695 continued to evolve. The average home price reached $269,344 in 2023 and further increased to $272,922 in 2024, showing a continued upward trend. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in zip code 36695 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also likely to increase, driven by growing demand for rental properties and overall market appreciation. However, the rate of increase for rent prices may be more moderate compared to home prices.
In summary, zip code 36695 has experienced a shift towards a higher percentage of renters, coupled with significant increases in average home prices. The interplay between rising home values, changing interest rates, and demographic shifts has reshaped the local housing market. As the area continues to grow and evolve, these trends are likely to have lasting impacts on housing affordability and community composition in the coming years.
