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Collinwood, Tennessee: Rising Home Values and Resilient Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Collinwood, a small city in Tennessee, has experienced notable shifts in its housing landscape over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices, revealing interesting patterns in the local real estate market. Homeownership rates in Collinwood have fluctuated over the years, with a general downward trend. In 2013, the homeownership rate stood at 82%, reaching a peak of 86% in 2015 and 2016. However, by 2022, it had decreased to 79%. This decline in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $74,060, and it steadily rose to $138,203 by 2022, representing an 86.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in Collinwood shows some correlation. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.4%), homeownership rates remained high at 82-86%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 79%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in Collinwood has seen an increase, with the percentage of renters rising from 18% in 2013 to 21% in 2022. Interestingly, despite this increase in renters, the average rent prices have shown a downward trend. In 2013, the average rent was $508, peaking at $644 in 2014, but then declining to $441 by 2022. This decrease in average rent prices, despite an increasing renter population, could be attributed to various factors such as changes in housing supply or local economic conditions.
In 2023 and 2024, Collinwood's housing market continued to evolve. The average home price rose to $150,162 in 2023 and further increased to $155,519 in 2024, showing a continued upward trend in property values. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability and market dynamics.
Looking ahead, based on the observed trends, we can project that average home prices in Collinwood are likely to continue their upward trajectory over the next five years, potentially reaching around $180,000 by 2029. However, the rate of increase may slow down due to higher interest rates. Average rent prices, which have been volatile, might stabilize or see a modest increase, potentially reaching around $500 by 2029, assuming economic conditions remain stable and housing supply keeps pace with demand.
In summary, Collinwood has experienced a gradual shift towards more renters, coupled with rising home values and fluctuating rent prices. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of the local real estate market. As the city moves forward, these trends will continue to shape its housing landscape, influencing both homeowners and renters in this Tennessee community.
