The rental market in Cookeville has also undergone significant changes. The percentage of renters increased from 47% in 2013 to 51% in 2022, mirroring the decline in homeownership. Average rent prices showed an overall upward trend, rising from $670 in 2013 to $767 in 2022, a 14.5% increase. However, this increase was not consistent year-over-year. For instance, average rent peaked at $845 in 2021 before decreasing to $767 in 2022. The city's growing population, which increased from 43,872 in 2013 to 49,363 in 2022, likely contributed to the demand for rental properties and the overall increase in rent prices.

Looking at more recent data, the average home price in Cookeville continued its upward trajectory, reaching $300,650 in 2023 and further increasing to $306,256 in 2024. This represents a 5.7% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the housing market.

Based on historical trends and current market conditions, we can make some predictions for the next five years. Average home prices in Cookeville are likely to continue rising, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $350,000 to $375,000 by 2029. Average rent prices may also continue to increase, potentially reaching $850 to $900 per month by 2029, driven by population growth and demand for rental properties.

In summary, Cookeville has experienced a gradual shift from homeownership to renting, with rising home prices potentially contributing to this trend. The interplay between federal interest rates, home prices, and rental market dynamics has shaped the city's housing landscape. As Cookeville continues to grow, balancing affordable housing options with the city's economic development will be crucial for maintaining a diverse and thriving community.