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Athens, Texas: Home Values Soar in the Black-Eyed Pea Capital
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
Athens, Texas, a charming city located in the eastern part of the state, has experienced notable shifts in its housing market over the past decade. With a population of 21,060 in 2022 and covering an area of 20.2 square miles, Athens has seen interesting trends in homeownership rates, average home prices, and average rent prices.
The homeownership rate in Athens has shown a general upward trend from 2013 to 2022. In 2013, the homeownership rate was 63%, which increased to 67% by 2022. This rise in homeownership coincided with a significant increase in average home prices. In 2013, the average home price in Athens was $125,297, which steadily climbed to $233,660 by 2022, representing an impressive 86.5% increase over this period.
The relationship between federal interest rates and homeownership rates in Athens follows a generally expected pattern. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.68%, homeownership rates in Athens increased from 63% to 69%. This trend aligns with the notion that lower interest rates typically encourage homeownership due to more affordable financing options.
Renter percentages in Athens have shown a corresponding decline as homeownership rates increased. In 2013, the renter-occupied rate was 36%, which decreased to 33% by 2022. Interestingly, despite this decline in the percentage of renters, average rent prices have increased significantly. The average rent price rose from $728 in 2013 to $908 in 2022, representing a 24.7% increase. This trend suggests that while fewer people are renting, those who do are paying more for their accommodations.
Looking at the most recent data, the average home price in Athens continued to rise in 2023, reaching $237,008. In 2024, it further increased to $237,511, showing a consistent upward trend. Concurrently, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Athens will continue to rise, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand and the overall trend of rising housing costs. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, Athens has experienced a notable increase in homeownership rates over the past decade, accompanied by significant growth in average home prices. While the percentage of renters has decreased, average rent prices have still risen substantially. The recent spike in interest rates and the continued increase in housing prices suggest that the Athens housing market may be entering a new phase, potentially affecting future homeownership rates and housing affordability in the city.
