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Central Franklin: Soaring Home Values and Increasing Ownership in a Dynamic Tennessee Neighborhood
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
Central Franklin, a vibrant neighborhood in Franklin, Tennessee, has experienced significant changes in homeownership rates and property values over the past decade. Known for its blend of historic charm and modern amenities, this area reflects broader economic trends and local market dynamics.
The neighborhood has seen a notable increase in homeownership rates, rising from 59% in 2013 to 64% in 2022. This upward trend in ownership coincides with a substantial surge in average home prices. In 2013, the average home price in Central Franklin was $218,944. By 2022, this figure had skyrocketed to $604,499, representing a remarkable 176% increase over nine years. This dramatic rise in property values likely contributed to the growing proportion of homeowners in the area, as residents sought to capitalize on the appreciating real estate market.
The relationship between federal interest rates and homeownership rates in Central Franklin follows a generally inverse pattern. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership in the neighborhood reached its peak at 65% in 2020 and 66% in 2021. This aligns with the well-established trend that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Conversely, the percentage of renters in Central Franklin has decreased from 41% in 2013 to 36% in 2022. Despite this decline, average rent prices have shown a steady increase. In 2013, the average rent was $1,154, climbing to $1,324 by 2022, a 15% increase. This rise in rent prices, coupled with the growing homeownership rate, suggests a competitive rental market, possibly driven by the area's increasing desirability and the overall population growth from 13,590 in 2013 to 13,588 in 2022.
As of 2024, the average home price in Central Franklin has reached $653,561, continuing the upward trajectory observed in previous years. This represents a 4.3% increase from the 2023 average of $626,861. Notably, the federal interest rate stands at 5.33% in 2024, up from 5.02% in 2023, indicating a tightening monetary policy that could potentially impact future homebuying trends.
Looking ahead, predictive models suggest that both average home prices and rent prices in Central Franklin are likely to continue their upward trend over the next five years. Home prices are projected to increase by approximately 5-7% annually, potentially reaching around $850,000 by 2029. Average rent prices are expected to rise at a more moderate rate of 3-4% per year, potentially hitting $1,550 by 2029.
In summary, Central Franklin has experienced a significant shift towards homeownership, accompanied by substantial increases in property values. The neighborhood has demonstrated resilience and attractiveness, with rising home and rent prices despite fluctuations in the broader economic landscape. These trends suggest a continued strong demand for housing in this desirable area of Franklin, Tennessee.
