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Zip Code 36877: Rising Home Values and Stable Ownership in Growing Smiths Station, 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 36877, located in Smiths Station, Alabama, has shown remarkable growth and dynamic shifts in its housing market over the past decade. This area has experienced a significant increase in population, rising from 9,600 in 2010 to 13,061 in 2022, indicating a thriving community with evolving housing needs. The ownership percentage has fluctuated slightly but remained relatively stable, while average home prices and average rent prices have generally trended upward.
The relationship between homeownership rates and average home prices in zip code 36877 reveals interesting patterns. In 2013, when ownership was at 73%, the average home price was $156,004. As average home prices steadily increased, reaching $181,056 in 2018, ownership dipped slightly to 72%. However, by 2022, despite average home prices rising to $239,356, ownership increased to 75%. This suggests that rising home values did not significantly deter homeownership in this area, possibly due to strong local economic factors or desirable community features.
Federal interest rates have played a role in homeownership trends in zip code 36877. When interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership remained relatively stable at around 73%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership experienced a slight dip to 70-71%. Interestingly, when interest rates dropped again in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rebounded to 72% by 2021 and further increased to 75% in 2022, despite a rising interest rate of 1.68% that year.
Renter percentages and average rent prices in zip code 36877 have shown some correlation. In 2013, with 27% renters, the average rent was $880. As the renter percentage increased to 30% in 2017, average rent actually decreased to $836, possibly due to increased rental supply. However, by 2021, with 28% renters, average rent reached its peak at $1,005. Interestingly, in 2022, despite a decrease in renter percentage to 25%, average rent dropped to $859, which could indicate a market correction or increased competition among landlords.
Looking at the most recent data, average home prices in zip code 36877 continued their upward trajectory, reaching $253,240 in 2023 and further increasing to $260,275 in 2024. This represents a substantial 8.7% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying decisions.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 36877 to continue their upward trajectory, potentially reaching around $300,000 by 2029. Average rent prices are expected to follow a similar upward trend, possibly surpassing $1,200 per month within the same timeframe, assuming consistent economic growth and demand in the area.
In summary, zip code 36877 has demonstrated resilience in its housing market, with homeownership rates remaining strong despite rising home prices. The area has shown the ability to absorb population growth while maintaining a balance between ownership and rental options. The recent sharp increase in interest rates, coupled with rising home prices, may present challenges for future homebuyers, but the strong ownership trend suggests a continued desire for homeownership in this community. As the area continues to develop, it will be crucial to monitor how these housing market dynamics evolve in response to broader economic factors and local community needs.
