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Zip Code 36870: Rising Home Values and Ownership Trends in Phenix City, 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 36870, located in Phenix City, Alabama, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has shown resilience and growth, with a population of 20,194 as of 2022.
The homeownership rate in zip code 36870 has fluctuated over the years, showing an overall increase from 73% in 2014 to 84% in 2022. This substantial rise in homeownership coincides with a steady increase in average home prices. In 2014, the average home price was $130,525, and by 2022, it had risen to $197,265, representing a 51% increase over eight years. This trend suggests that despite rising prices, more residents in the area were able to purchase homes.
Federal interest rates have played a significant role in homeownership trends. From 2014 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates coincided with the increase in homeownership rates, as more affordable financing options were available to potential buyers. However, it's worth noting that even as interest rates began to rise sharply in 2022 (1.68%) and 2023 (5.02%), homeownership rates in the zip code continued to climb, reaching 84% in 2022.
The rental market in zip code 36870 has shown some volatility. In 2014, 27% of residents were renters, and the average rent was $1,028. By 2022, the percentage of renters had decreased to 16%, while the average rent had slightly decreased to $971. This decrease in both the renter population and average rent prices could be attributed to the shift towards homeownership in the area. The population growth from 20,142 in 2014 to 20,194 in 2022 may have also influenced these trends, as more housing units became available for purchase.
Looking at the most recent data, average home prices in zip code 36870 continued to rise significantly in 2023 and 2024. In 2023, the average home price reached $212,629, and in 2024, it further increased to $221,722. This represents a 12.5% increase from 2022 to 2024. Concurrently, federal interest rates have remained high, at 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 36870 will continue to rise, albeit at a potentially slower rate due to higher interest rates. Based on the historical data and current trends, we project that average home prices could reach approximately $250,000 to $275,000 by 2029. For average rent prices, the forecast suggests a potential stabilization or slight increase, possibly reaching around $1,100 to $1,200 per month by 2029, assuming economic conditions remain relatively stable.
In summary, zip code 36870 has demonstrated a strong trend towards homeownership, with rates increasing significantly from 2014 to 2022. This trend has occurred alongside rising average home prices and, more recently, increasing interest rates. The rental market has shown a decrease in both the percentage of renters and average rent prices. As we look to the future, continued growth in home prices is expected, while the rental market may see moderate increases in average rents.
