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Zip Code 36853: Rising Home Values and Stable Ownership in Rural Dadeville, 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 36853, located in Dadeville, Alabama, presents an interesting case study of housing dynamics in a small urban area. This zip code, spanning 189.93 square miles, has seen fluctuations in homeownership rates and housing prices over the past decade. The overall trend shows a slight increase in homeownership, coupled with a significant rise in average home prices and average rent costs.
The homeownership rate in zip code 36853 has shown a modest increase from 78% in 2013 to 78% in 2022. During this period, average home prices experienced substantial growth. In 2013, the average home price was $226,914, which steadily increased to $468,467 by 2022, representing a remarkable 106.5% increase over nine years. This trend suggests that despite rising home prices, residents in this area have maintained a strong preference for homeownership.
Federal interest rates have played a significant role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This coincided with a stable homeownership rate of 78% in the area. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), we observed a slight increase in homeownership to 82% in 2019, possibly due to residents securing mortgages before further rate increases.
The rental market in zip code 36853 has also experienced notable changes. The percentage of renters decreased slightly from 22% in 2013 to 22% in 2022. However, average rent prices have increased significantly during this period. In 2013, the average rent was $582, which rose to $804 by 2022, marking a 38.1% increase. This trend suggests that while the proportion of renters has remained relatively stable, they are facing higher housing costs.
In 2023 and 2024, we see a slight stabilization in the housing market. The average home price in 2023 was $465,158, showing a minor decrease from 2022. However, in 2024, prices have begun to climb again, reaching $471,513. This comes alongside a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions.
Looking ahead, our predictive models suggest a continued upward trend in both average home prices and rent costs over the next five years. Home prices are projected to increase by approximately 3-5% annually, potentially reaching around $545,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially increasing to about $950 per month in the same timeframe.
In summary, zip code 36853 has demonstrated resilience in homeownership rates despite substantial increases in housing costs. The area has maintained a high proportion of homeowners, even as both home prices and rent costs have risen significantly. The interplay between federal interest rates, housing prices, and homeownership rates highlights the complex dynamics of the local real estate market. As we move forward, residents of this zip code may continue to face rising housing costs, both for homeowners and renters, reflecting broader trends in the housing market.
