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Zip Code 36830: Rising Home Values and Ownership Rates in Auburn's University-Influenced Housing Market
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 36830, located in Auburn, Alabama, has experienced significant demographic and housing market changes over the past decade. This area, known for its proximity to Auburn University, has seen a dynamic shift in homeownership rates and housing prices, reflecting broader economic trends and local factors. The homeownership rate in zip code 36830 has shown an interesting trend over the years. In 2013, the area had an even split between owners and renters, with 50% of housing units being owner-occupied. However, this balance shifted towards renters in subsequent years, reaching a low of 47% homeownership in 2018. Interestingly, the trend reversed from 2020 onwards, with homeownership rates increasing to 54% by 2022. This shift coincided with significant changes in average home prices. In 2013, the average home price was $203,136, which steadily increased to $345,168 by 2022, representing a substantial 70% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates initially declined. However, despite rising interest rates from 2017 to 2019 (1% to 2.16%), homeownership rates stabilized. The most significant increase in homeownership occurred between 2020 and 2022, when interest rates dropped dramatically (from 0.38% in 2020 to 1.68% in 2022), suggesting that lower interest rates may have encouraged home buying in this period.
Renter percentages and average rent prices in zip code 36830 also demonstrate interesting trends. The proportion of renters increased from 49% in 2013 to a peak of 52% in 2019, before declining to 46% by 2022. During this period, average rent prices showed a general upward trend, rising from $1,062 in 2013 to $1,134 in 2022, an increase of about 6.8%. The peak in average rent was observed in 2019 at $1,188, coinciding with the highest percentage of renters. This trend suggests a possible correlation between rental demand and prices in the area.
Looking at the most recent data, the average home price in zip code 36830 continued to rise, reaching $365,786 in 2023 and further increasing to $377,054 in 2024. This represents a 9.2% increase from 2022 to 2024. Concurrently, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen in over a decade.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 36830 to continue their upward trajectory, potentially reaching around $450,000 by 2029. This projection is based on the consistent growth pattern observed over the past decade. Average rent prices are also likely to increase, albeit at a slower rate, potentially reaching approximately $1,300 per month by 2029. These predictions assume a continuation of current economic conditions and local market factors.
In summary, zip code 36830 has experienced a notable shift towards homeownership in recent years, despite rising home prices. The area has shown resilience in its housing market, with both home values and rent prices demonstrating upward trends. The interplay between federal interest rates, homeownership rates, and housing prices suggests a complex but generally positive outlook for the local real estate market in the coming years.
