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Colonial Homeowners: Rising Home Values and Stable Ownership in Jackson, Mississippi
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
Colonial Homeowners: A Decade of Housing Market Dynamics in Jackson, Mississippi Colonial Homeowners, a neighborhood in Jackson, Mississippi, has experienced notable changes in its housing market over the past decade. In 2022, the area had a population of 1,623 and a homeownership rate of 77%. The neighborhood has seen fluctuations in both homeownership rates and property values, with average home prices showing an overall upward trend despite some recent declines. The relationship between homeownership rates and average home prices in Colonial Homeowners has been dynamic. In 2013, the homeownership rate was 81% with an average home price of $132,763. By 2022, while the homeownership rate had decreased slightly to 77%, the average home price had increased significantly to $191,156. This trend suggests that despite rising home values, a substantial portion of residents have maintained homeownership. Interestingly, the peak homeownership rate of 84% observed in 2017 and 2018 coincided with relatively lower average home prices of $137,906 and $139,809 respectively, indicating that more affordable housing may have facilitated higher rates of homeownership during those years.
Federal interest rates have played a role in homeownership trends in Colonial Homeowners. From 2013 to 2016, historically low interest rates ranging from 0.09% to 0.4% coincided with relatively stable homeownership rates between 76% and 81%. As interest rates began to rise more substantially from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed some fluctuation but generally remained robust. This suggests that factors beyond interest rates were influencing homeownership decisions in the neighborhood.
Renter percentages and average rent prices in Colonial Homeowners have shown interesting trends. In 2013, the renter-occupied percentage was 19% with an average rent of $1,124. By 2022, the renter percentage had increased slightly to 23%, with the average rent rising to $1,328. The highest average rent was recorded in 2017 at $1,549, coinciding with the lowest renter percentage of 16%. This inverse relationship suggests that as rents increased, some residents may have transitioned to homeownership, possibly due to the relative affordability of purchasing compared to renting at that time.
In 2023, the average home price in Colonial Homeowners decreased slightly to $189,295, and in 2024, it further decreased to $178,735. This recent downturn in home prices coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to a cooling in the housing market, potentially making homeownership less accessible for some potential buyers.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices may continue to experience moderate growth, potentially reaching around $200,000 by 2029, assuming economic conditions remain stable. Average rent prices could see a steady increase, potentially reaching approximately $1,500 by 2029, reflecting ongoing demand for rental properties in the area.
In summary, Colonial Homeowners has maintained a relatively high homeownership rate despite fluctuations in average home prices and federal interest rates. The neighborhood has demonstrated resilience in its housing market, with homeownership rates remaining above 70% throughout the observed period. The recent cooling in home prices, coupled with rising interest rates, may present new challenges and opportunities for both homeowners and renters in the coming years. The interplay between homeownership rates, average home prices, and rent prices will likely continue to shape the neighborhood's housing landscape in the near future.
