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Zip Code 39096: Rising Home Values and Ownership in Alcorn State University
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 39096, located in Alcorn State University, Mississippi, presents an interesting case study of housing dynamics in a university-centered community. This area has experienced notable fluctuations in homeownership rates and average home prices over the past decade, with a general trend towards increased renting and rising average rent prices.
The homeownership rate in zip code 39096 has shown significant volatility between 2013 and 2022. Starting at 96% in 2013, it decreased to 48% in 2018 before rebounding to 70% in 2022. This fluctuation coincides with changes in average home prices, which rose from $132,860 in 2016 to $156,511 in 2022, representing an 18% increase over six years.
The relationship between federal interest rates and homeownership rates in this area doesn't follow the typical inverse correlation seen in many markets. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.83%), homeownership rates fluctuated widely. This suggests that other factors, possibly related to the university's influence, play a significant role in local housing decisions.
Renter percentages and average rent prices show a more consistent trend. The percentage of renters increased from 4% in 2013 to 29% in 2022, with a peak of 52% in 2018. Correspondingly, average rent prices rose substantially, from $295 in 2013 to $606 in 2022, marking a 105% increase. This trend aligns with the growing student population, which increased from 1,041 in 2013 to 1,701 in 2022, likely driving demand for rental properties.
In 2023 and 2024, we observe a significant shift in the housing market of zip code 39096. The average home price dropped to $127,121 in 2023 and further decreased to $118,904 in 2024, representing a 24% decline from the 2022 peak. This downturn coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially dampening home buying activity.
Looking ahead, predictive models suggest a potential stabilization in average home prices over the next five years, with modest growth expected as the market adjusts to higher interest rates. Average rent prices are forecasted to continue their upward trajectory, albeit at a slower pace, driven by the consistent demand from the student population.
In summary, zip code 39096 demonstrates a dynamic housing market heavily influenced by its university setting. The area has seen a general trend towards increased renting, rising average rent prices, and volatile homeownership rates. Recent years have brought a significant correction in average home prices, likely influenced by macroeconomic factors such as rising interest rates. The interplay between the university's presence, local economic conditions, and broader market forces will continue to shape this unique housing landscape in the coming years.
