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Centertown, Tennessee: Rising Home Values and Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Centertown, a small town in Tennessee, has experienced fluctuating trends in homeownership rates and housing prices over the past decade. This analysis explores the dynamics between ownership percentages, average home prices, and average rent prices in Centertown.
The homeownership rate in Centertown has shown a slight decline over the years, starting at 88% in 2013 and reaching 85% in 2022. This trend coincides with changes in average home prices, which have seen a significant increase in recent years. While specific home price data for earlier years is not available, we can observe that the average home price in 2022 was $208,619.
Examining the relationship between federal interest rates and homeownership rates reveals some interesting patterns. In 2013, when homeownership was at 88%, the federal interest rate was 0.11%. As interest rates gradually increased to 1.68% in 2022, we see a corresponding decrease in homeownership to 85%. This aligns with the general trend that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Centertown has shown a slight increase, rising from 12% in 2013 to 15% in 2022. This change corresponds with fluctuations in average rent prices. In 2013, the average rent was $586, which increased to $901 by 2022, representing a 53.8% increase over nine years. It's worth noting that the population of Centertown has remained relatively stable during this period, with 2,834 residents in 2013 and 2,630 in 2022, suggesting that changes in rent prices are not primarily driven by population shifts.
Looking at the most recent data from 2023 and 2024, we see that average home prices in Centertown continue to rise. In 2023, the average home price was $210,511, and in 2024 it increased to $226,820, representing a 7.7% increase in just one year. This upward trend in home prices occurs alongside rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and rent prices in Centertown. Based on the recent data and historical trends, average home prices could potentially reach around $275,000 to $300,000 by 2029. Average rent prices may similarly continue to increase, potentially reaching $1,100 to $1,200 per month within the same timeframe.
In summary, Centertown has experienced a gradual shift towards a slightly higher percentage of renters, coupled with significant increases in both average home prices and rent prices. The relationship between federal interest rates and homeownership rates follows expected patterns, with higher rates corresponding to slightly lower homeownership. As home prices and rents continue to rise, it will be crucial to monitor how these trends impact the overall affordability and demographic composition of Centertown in the coming years.
