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Gordonsville, Tennessee: Rising Home Values and Shifting Ownership Patterns in a Small Town
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Gordonsville, a small town in Tennessee, has experienced notable shifts in its housing market over the past decade. This quaint community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Gordonsville has shown some variability but has generally remained high. In 2013, the homeownership rate stood at 79%, and by 2022, it had slightly decreased to 73%. During this period, average home prices in Gordonsville have seen a substantial increase. In 2013, the average home price was $127,902, and by 2022, it had risen dramatically to $305,188, representing a 138% increase over nine years.
The relationship between federal interest rates and homeownership rates in Gordonsville shows some correlation. For instance, when interest rates were relatively low in 2013 at 0.11%, the homeownership rate was at 79%. As interest rates began to rise, particularly from 2016 onwards, there was a slight decline in homeownership rates. By 2022, with interest rates at 1.68%, the homeownership rate had decreased to 73%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Rental trends in Gordonsville have also shown interesting patterns. The percentage of renters increased from 21% in 2013 to 27% in 2022. Concurrently, average rent prices experienced fluctuations. In 2013, the average rent was $569, which decreased to $451 in 2019 before rising sharply to $798 in 2022. This represents a 40% increase in average rent from 2013 to 2022, despite some interim decreases. The increase in both renter percentage and average rent prices, especially in recent years, may be attributed to factors such as population growth and changing housing preferences.
In 2023 and 2024, Gordonsville's housing market showed signs of stabilization. The average home price in 2023 was $304,010, a slight decrease from 2022. However, in 2024, it increased marginally to $308,917. Interestingly, federal interest rates rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends.
Looking ahead, predictive models suggest that average home prices in Gordonsville may continue to rise, albeit at a slower pace than in previous years. Over the next five years, average home prices could potentially reach around $350,000 to $375,000, assuming current economic conditions persist. Average rent prices are also projected to increase, potentially reaching $900 to $1,000 per month within the next five years, driven by ongoing demand for rental properties and overall market appreciation.
In summary, Gordonsville has experienced significant growth in both average home prices and average rent prices over the past decade, with some fluctuations in homeownership rates. The recent stabilization of home prices, coupled with rising interest rates, suggests a potential shift in the housing market dynamics. As the town continues to evolve, these trends will likely shape the accessibility and affordability of housing for both owners and renters in the coming years.
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