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Zip Code 36784: Thomasville's Fluctuating Home Values and Ownership Rates
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 36784, located in Thomasville, Alabama, has experienced significant demographic and housing market changes over the past decade. This area has seen a gradual shift in homeownership rates, coupled with fluctuations in average home prices and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 36784 has shown a notable decline from 2013 to 2018, followed by a slight recovery in recent years. In 2013, 74% of residents were homeowners, but this figure dropped to 61% by 2018. However, there has been a modest rebound, with homeownership reaching 66% in 2022. This trend coincides with changes in average home prices, which have shown a steady increase over time. In 2016, the average home price was $106,079, rising to $153,216 by 2022, representing a 44.4% increase over six years.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally expected pattern. As interest rates remained low from 2013 to 2016 (below 0.5%), homeownership rates declined, possibly due to other economic factors. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized and then slightly increased. This could be attributed to potential buyers entering the market before further rate increases.
Renter percentages in zip code 36784 have shown an inverse relationship to homeownership rates, naturally. The proportion of renters increased from 26% in 2013 to a peak of 39% in 2018, before slightly decreasing to 34% in 2022. Average rent prices have generally trended upward during this period, rising from $522 in 2013 to $646 in 2022, an increase of 23.8%. It's worth noting that the population of the zip code has decreased from 7,792 in 2013 to 6,400 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, the housing market in zip code 36784 has shown some interesting developments. The average home price in 2023 was $147,499, representing a slight decrease from the 2022 peak. This trend continued into 2024, with average home prices further declining to $138,224. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contribute to the cooling of home prices in the area.
Looking ahead, based on the observed trends and current market conditions, we can project potential scenarios for the next five years. Average home prices may continue to experience a slight downward adjustment in the short term due to high interest rates, potentially stabilizing around $135,000-$140,000. However, if interest rates begin to decrease, we could see a resurgence in home prices, potentially reaching $160,000-$165,000 by 2029. Average rent prices are likely to continue their upward trajectory, albeit at a slower pace, potentially reaching $700-$725 by 2029.
In summary, zip code 36784 has experienced a dynamic housing market over the past decade, with shifting homeownership rates, increasing average home prices until recent years, and steadily rising average rent prices. The interplay between interest rates, population changes, and broader economic factors has significantly influenced these trends. Moving forward, the area may see a period of market adjustment followed by potential growth, depending on economic conditions and interest rate movements.
