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Big Rock: Rising Home Values and Ownership in Tennessee's Resilient Housing Market
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
Big Rock, located in Tennessee, is a small community that has experienced notable shifts in its housing market over the past decade. The city, spanning 1.72 square miles, has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local demographic changes.
From 2013 to 2022, Big Rock witnessed a significant increase in homeownership rates, rising from 77% to 87%. This upward trend in homeownership coincided with a substantial growth in average home prices. In 2013, the average home price was $114,026, which steadily increased to $207,779 by 2022, representing an impressive 82% growth over this period. This correlation suggests that despite rising home values, residents of Big Rock were increasingly able and willing to invest in homeownership.
The relationship between federal interest rates and homeownership rates in Big Rock presents an interesting dynamic. Despite historically low interest rates between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates continued to climb from 77% to 88%. This trend persisted even as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, with homeownership maintaining a high rate of 87%. This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have played a significant role in driving homeownership in the area.
Renter percentages in Big Rock have shown an inverse relationship to homeownership rates, declining from 23% in 2013 to 13% in 2022. Interestingly, average rent prices have remained relatively stable during this period, with some fluctuations. In 2013, the average rent was $625, peaking at $658 in 2018, before settling at $650 in 2022. This stability in rent prices, coupled with the declining percentage of renters, suggests a potential shift in housing preferences or economic circumstances favoring homeownership in the community.
In 2023 and 2024, Big Rock experienced a slight dip in average home prices, followed by a recovery. The average home price in 2023 was $203,230, showing a minor decrease from 2022. However, in 2024, prices rebounded to $210,854, indicating a resilient housing market. Notably, federal interest rates rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in average home prices for Big Rock over the next five years. The average home price could potentially reach around $240,000 by 2029, assuming a moderate annual growth rate of 2-3%. Rent prices, which have shown less volatility, may see a gradual increase to approximately $700 per month by 2029, factoring in historical trends and potential inflation.
In summary, Big Rock has demonstrated a strong trend towards homeownership over the past decade, with rising home values and stable rent prices. The community has shown resilience in maintaining high homeownership rates despite fluctuations in interest rates and economic conditions. As the housing market continues to evolve, Big Rock appears poised for steady growth in property values, potentially attracting more homeowners and solidifying its position as a predominantly owner-occupied community.
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