As homeownership rates declined, the percentage of renters in Donelson Hills increased from 20% in 2013 to 40% in 2022. This shift coincided with a significant rise in average rent prices. In 2013, the average rent was $957, which increased to $1,335 by 2022, a 39.5% increase. The growing renter population and rising rent prices suggest an increasing demand for rental properties in the area, possibly driven by those unable to afford homeownership due to rising property values.

Looking at the most recent data, average home prices in Donelson Hills continued to rise in 2023 and 2024, reaching $413,218 and $423,274 respectively. This represents a 2.8% increase from 2022 to 2023 and a further 2.4% increase from 2023 to 2024. Interestingly, these price increases occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests a strong underlying demand for housing in the area, potentially driven by factors such as job growth or neighborhood desirability.

Based on the observed trends, we can predict that average home prices in Donelson Hills will continue to rise over the next five years, albeit at a potentially slower rate due to high interest rates. We might expect average home prices to reach approximately $475,000 to $500,000 by 2029. Similarly, average rent prices are likely to continue their upward trajectory, potentially reaching $1,500 to $1,600 per month by 2029.

In summary, Donelson Hills has experienced a significant shift in its housing market over the past decade. The decline in homeownership rates, coupled with substantial increases in both average home prices and average rent prices, paints a picture of a neighborhood becoming increasingly expensive for both buyers and renters. The resilience of property values in the face of rising interest rates suggests a strong local housing market, but also raises questions about long-term affordability for residents.