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Dayton, Tennessee: Rising Home Values and Ownership Trends in a Riverside 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
Dayton, Tennessee, a charming city nestled in the heart of the Volunteer State, has experienced dynamic shifts in its housing market over the past decade. Known for hosting the famous Scopes "Monkey" Trial in 1925, this historically significant city has seen notable trends in homeownership rates and property values. From 2013 to 2022, Dayton witnessed a gradual increase in homeownership, while average home prices more than doubled, and average rent prices showed moderate growth.
The relationship between homeownership rates and average home prices in Dayton reveals an interesting pattern. In 2013, the homeownership rate stood at 62%, with an average home price of $106,842. As average home prices steadily climbed, reaching $229,190 by 2022, the homeownership rate also increased to 68%. This 6 percentage point rise in homeownership, despite rapidly appreciating home values, suggests a strong local economy and a desire for property ownership among Dayton residents.
Federal interest rates have played a significant role in shaping Dayton's homeownership landscape. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership in Dayton increased from 62% to 65%, likely fueled by affordable financing options. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, Dayton's homeownership rate continued to climb, reaching 68% in 2022. This trend suggests that local factors may have outweighed the impact of rising interest rates on homeownership decisions.
The rental market in Dayton has shown interesting trends in relation to the city's homeownership rates. In 2013, 38% of residents were renters, with an average rent of $567. As homeownership increased, the percentage of renters decreased to 32% by 2022. Despite this decline in the renter population, average rent prices rose to $626 by 2022, representing a 10.4% increase over the decade. This trend suggests that even with a smaller pool of renters, demand for rental properties remained strong enough to support rent growth.
In 2023 and 2024, Dayton's housing market continued to evolve. The average home price in 2023 reached $233,996, a modest increase from 2022. By 2024, it further rose to $241,960, indicating a continuing upward trend in property values. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying decisions and could potentially slow the rate of home price appreciation.
Looking ahead, predictive models suggest that Dayton's housing market will continue to grow, albeit at a more moderate pace. Average home prices are projected to increase by approximately 3-4% annually over the next five years, potentially reaching around $280,000 by 2029. Average rent prices are expected to follow a similar trajectory, with estimated annual increases of 2-3%, potentially reaching about $720 per month by 2029.
In summary, Dayton, Tennessee has demonstrated a resilient and growing housing market over the past decade. The city has seen a steady increase in homeownership rates despite rising home prices, suggesting a strong local economy and a preference for homeownership among residents. The rental market, while shrinking in terms of the percentage of renters, has maintained growth in average rent prices. As Dayton moves forward, it appears poised for continued, albeit more moderate, growth in both the homeownership and rental sectors, reflecting the city's enduring appeal and economic stability.
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