The rental market in Fayetteville has also seen notable changes. The percentage of renters increased from 32% in 2013 to 34% in 2022, with a peak of 40% in 2016 and 2017. Average rent prices have shown an overall upward trend, rising from $576 in 2013 to $683 in 2022, an 18.6% increase. However, this increase has not been steady, with some fluctuations observed. For instance, average rent peaked at $792 in 2021 before decreasing to $683 in 2022. These changes in the rental market may be influenced by factors such as population growth, which increased from 10,306 in 2013 to 11,142 in 2022, potentially increasing demand for rental properties.

Looking at the most recent data, average home prices in Fayetteville continued to rise, reaching $229,911 in 2023 and $234,980 in 2024. This represents a 3.3% increase from 2022 to 2023 and a further 2.2% increase from 2023 to 2024, indicating a continued but slowing appreciation in home values. Notably, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homebuying activity.

Based on these trends, we can forecast that over the next five years, average home prices in Fayetteville may continue to appreciate, but at a more moderate pace. We might expect average home prices to reach around $260,000 to $270,000 by 2029. Average rent prices could also continue to increase, potentially reaching $750 to $800 per month by 2029, assuming steady population growth and consistent demand for rental properties.

In summary, Fayetteville's housing market has shown resilience and growth over the past decade. The city has experienced significant appreciation in home values, a slight decrease in homeownership rates, and moderate increases in average rent prices. These trends, coupled with population growth and changing interest rates, paint a picture of a dynamic real estate market that continues to evolve.