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Zip Code 36756: Average Home Values and Ownership Trends in Marion, 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 36756, located in Marion, Alabama, has experienced significant changes in homeownership rates and housing prices over the past decade. This area, known for its historical significance and small-town charm, has seen fluctuations in its housing market that reflect broader economic trends and local demographic shifts.
The homeownership rate in zip code 36756 has shown notable variability from 2013 to 2022. In 2013, the homeownership rate stood at 75%, gradually increasing to peak at 82% in 2016. However, this trend reversed in subsequent years, with the rate declining to 70% by 2022. Concurrently, average home prices in the area have generally trended upward. From 2016 to 2022, average home prices rose from $86,352 to $126,430, representing a substantial 46.4% increase over this period.
The relationship between federal interest rates and homeownership rates in zip code 36756 appears to follow expected patterns. For instance, the period of low interest rates from 2013 to 2016 (ranging from 0.11% to 0.40%) coincided with an increase in homeownership from 75% to 82%. Conversely, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined, falling to 70% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Renter percentages and average rent prices in zip code 36756 have shown interesting trends. The percentage of renters decreased from 25% in 2013 to a low of 18% in 2016, before rising again to 30% by 2022. Average rent prices, however, have not consistently followed this pattern. From 2013 to 2022, average rent prices fluctuated, peaking at $818 in 2018 before decreasing to $684 in 2022. This decrease in average rent despite an increase in the renter population could be influenced by factors such as changes in housing stock or local economic conditions.
In 2023 and 2024, the housing market in zip code 36756 has shown signs of cooling. The average home price decreased from $126,430 in 2022 to $121,995 in 2023, and further to $116,624 in 2024. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contribute to the downward pressure on home prices by reducing affordability for potential buyers.
Looking ahead, based on recent trends and current economic conditions, we can project potential scenarios for the next five years. Average home prices may continue to face downward pressure in the short term due to high interest rates, potentially stabilizing or showing modest growth as the market adjusts. Average rent prices, which have shown resilience even during periods of increased renter population, may see moderate increases as demand for rental properties potentially rises in response to decreased homeownership affordability.
In summary, zip code 36756 has experienced significant shifts in its housing market dynamics over the past decade. The area has seen a general trend of increasing home values, albeit with recent declines, alongside fluctuations in homeownership rates that appear responsive to changes in federal interest rates. The rental market has shown resilience in terms of pricing, despite variations in the renter population percentage. These trends reflect the complex interplay of local and national economic factors shaping the housing landscape in this Alabama community.
