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Clarksville, Tennessee: Rising Home Values and Ownership Rates Near Fort Campbell
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Clarksville, Tennessee, a vibrant city known for its proximity to Fort Campbell military base, has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices in Clarksville from 2010 to 2024, revealing interesting patterns in the city's real estate landscape.
The homeownership rate in Clarksville has shown fluctuations over the years, with a notable increase in recent times. In 2013, the homeownership rate stood at 54%, and it remained relatively stable until 2019, when it dipped slightly to 51%. However, there was a significant uptick in homeownership by 2022, reaching 59%. This increase coincided with a substantial rise in average home prices. From 2010 to 2022, average home prices in Clarksville rose steadily, starting at $153,082 in 2010 and reaching $287,659 by 2022, representing an impressive 87.9% increase over this period.
The relationship between federal interest rates and homeownership rates in Clarksville follows a generally expected pattern. During periods of lower interest rates, such as from 2010 to 2016 when rates remained below 0.5%, homeownership rates were relatively stable. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, there was a slight dip in homeownership. However, the recent surge in homeownership to 59% in 2022 occurred despite rising interest rates, suggesting other factors were at play in Clarksville's housing market.
Renter percentages in Clarksville have shown an inverse relationship to homeownership rates. In 2013, the renter-occupied rate was 46%, and it peaked at 50% in 2015 before gradually declining to 41% by 2022. Average rent prices have generally increased over time, rising from $907 in 2013 to $1,228 in 2022, a 35.4% increase. This trend in rent prices, coupled with the city's growing population (from 133,669 in 2010 to 176,977 in 2022), suggests a competitive rental market despite the recent shift towards homeownership.
In 2023 and 2024, Clarksville's housing market continued to evolve. The average home price reached $298,321 in 2023 and further increased to $304,172 in 2024, representing a 5.7% growth over these two years. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade.
Looking ahead, predictive models suggest that Clarksville's housing market will likely continue its upward trajectory. Based on historical trends, average home prices could potentially reach around $350,000 to $375,000 in the next five years. Average rent prices may also continue to rise, potentially reaching $1,400 to $1,500 per month. However, these projections assume consistent economic conditions and may be influenced by various factors such as local economic development, population growth, and broader market trends.
In summary, Clarksville has experienced a significant increase in homeownership rates and average home prices over the past decade, particularly in recent years. Despite rising interest rates, the city's housing market has shown resilience, with both ownership and rental sectors demonstrating growth. The coming years are likely to see continued appreciation in both home values and rental prices, reflecting Clarksville's dynamic real estate market and growing population.
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