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Crab Orchard, Tennessee: Rising Home Values and High Ownership Rates in a Small City
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
Crab Orchard, Tennessee, a small city in Cumberland County with a population of 5,119 as of 2022, has experienced significant changes in its housing market over the past decade. Known for its picturesque landscapes and close-knit community, Crab Orchard has seen a slight increase in homeownership rates alongside substantial growth in average home prices and rent rates.
The homeownership rate in Crab Orchard has modestly increased from 82% in 2013 to 84% in 2022. This trend coincides with a remarkable 121.6% increase in average home prices, which grew from $116,509 in 2013 to $258,218 in 2022. Despite rising costs, Crab Orchard residents have maintained a strong preference for homeownership, as evidenced by the relationship between homeownership rates and average home prices.
Federal interest rates have played a crucial role in shaping homeownership trends in Crab Orchard. From 2013 to 2016, historically low interest rates ranging from 0.11% to 0.40% coincided with relatively stable homeownership rates of 82-84%. As interest rates rose more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates fluctuated slightly but generally remained high, reaching 85% in 2018. This suggests that while interest rates influence homeownership, other factors such as local economic conditions and housing preferences also play significant roles in Crab Orchard.
The rental market in Crab Orchard has also undergone changes. The percentage of renters decreased slightly from 18% in 2013 to 16% in 2022. However, average rent prices have consistently increased, rising from $697 in 2013 to $814 in 2022, an increase of 16.8%. This trend indicates that while the proportion of renters has decreased slightly, those who do rent are facing higher costs. The population growth from 4,592 in 2013 to 5,119 in 2022 may have contributed to the increased demand for rental properties, pushing average rents higher despite the smaller renter population.
Recent data shows that the average home price in Crab Orchard reached $265,907 in 2023 and further increased to $279,341 in 2024, indicating a continued upward trajectory in property values. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may pose challenges for potential homebuyers, potentially affecting future homeownership rates in the city.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Crab Orchard will continue to rise, potentially reaching around $320,000 by 2029. This projection is based on the consistent growth pattern observed over the past decade. For average rent prices, the forecast suggests a more moderate increase, potentially reaching approximately $950 by 2029. These projections assume a continuation of current economic conditions and housing market trends.
In summary, Crab Orchard has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing property values. The city has maintained a strong preference for homeownership despite rising home prices and fluctuating interest rates. The rental market, while smaller, has seen significant increases in average rents. As the city continues to grow, these trends are likely to shape its housing landscape, with potential challenges arising from the recent spike in interest rates and the continued appreciation of home values.
