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Franklin, Texas: Rising Home Values and Ownership Amid Population Fluctuations
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
Franklin, Texas, is a small urban center with a fluctuating population that reached 1,995 residents in 2022. The city has experienced notable shifts in homeownership rates and housing costs over the past decade, reflecting broader economic trends and local market dynamics.
From 2013 to 2022, Franklin saw a significant increase in homeownership rates, rising from 54% to 62%. This upward trend in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price in Franklin was $192,074, which steadily increased to $339,693 by 2022, representing a 76.9% increase over this period. This correlation suggests that despite rising home values, more residents were able to enter the housing market as owners.
The relationship between federal interest rates and homeownership rates in Franklin shows an interesting pattern. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates increased from 54% to 57%. As interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), homeownership rates continued to climb, reaching 61% in 2019. This trend suggests that factors beyond interest rates, such as local economic conditions or housing policies, may have played a significant role in driving homeownership in Franklin.
Renter percentages in Franklin showed an overall decline from 2013 to 2022, dropping from 46% to 38%. Interestingly, average rent prices increased significantly during this period. In 2013, the average rent was $579, which rose to $773 by 2022, a 33.5% increase. This increase in rent prices, coupled with a decreasing percentage of renters, could indicate improved economic conditions enabling more residents to transition from renting to owning, or possibly a shift in the city's demographic composition.
In 2023 and 2024, Franklin experienced a slight decline in average home prices, with values of $317,966 and $323,398 respectively. This represents a 6.4% decrease from the 2022 peak, potentially indicating a cooling in the local housing market. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, which may have contributed to the moderation in home prices.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in Franklin may continue to experience moderate growth over the next five years, potentially reaching around $350,000 by 2029. Average rent prices could also see continued increases, potentially approaching $900 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Franklin has demonstrated a strong trend towards increased homeownership despite rising home prices over the past decade. The city has shown resilience in its housing market, with homeownership rates continuing to rise even as both home prices and rent costs increased substantially. The recent cooling in home prices, coupled with higher interest rates, suggests a potential shift in the market dynamics that will be important to monitor in the coming years.
