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Collins, Mississippi: Home Values Rise as Ownership Declines
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
Collins, Mississippi, a small urban area with 5,345 residents as of 2022, has experienced significant changes in homeownership rates and housing prices over the past decade. These shifts reflect broader economic trends and local market dynamics. Homeownership rates in Collins have declined notably in recent years. In 2013, 74% of residents owned their homes, but by 2022, this figure had dropped to 59%. This 15 percentage point decrease coincided with a substantial increase in average home prices. The average home price rose from $87,862 in 2012 to $128,761 in 2022, representing a 46.5% increase over this period. The relationship between federal interest rates and homeownership rates in Collins follows an expected pattern. As interest rates remained low from 2013 to 2016, ranging from 0.1% to 0.4%, homeownership rates remained relatively stable at around 74-75%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined sharply to 59%.
Conversely, the percentage of renters in Collins increased from 26% in 2013 to 41% in 2022. This rise in renters coincided with fluctuations in average rent prices. The average rent increased from $561 in 2013 to a peak of $732 in 2021, before slightly decreasing to $643 in 2022. The population decline from 5,540 in 2013 to 5,345 in 2022 may have contributed to the moderation of rent prices despite the increasing percentage of renters.
In 2023 and 2024, Collins experienced notable changes in its housing market. The average home price slightly decreased from $128,761 in 2022 to $122,898 in 2023, before marginally increasing to $124,773 in 2024. This occurred as federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and demand.
Looking ahead, based on recent trends, it is projected that average home prices in Collins may continue to increase moderately over the next five years, potentially reaching around $135,000 by 2029. Average rent prices are also expected to rise, possibly reaching approximately $700 per month in the same timeframe, assuming current economic conditions and population trends persist.
In summary, Collins has experienced a substantial shift from homeownership to renting over the past decade, coinciding with rising home prices and fluctuating rent costs. The recent high interest rates have likely contributed to the cooling of home prices, while the rental market continues to grow. These trends reflect the changing dynamics of the local housing market and broader economic factors affecting the city.
