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Hampton, Tennessee: Rising Home Values and Strong Ownership in a Shrinking Community
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
Hampton, Tennessee, is a small community nestled in the eastern part of the state. This charming area has experienced fluctuations in its population and housing market over the past decade. The town has maintained a predominantly owner-occupied housing landscape, with homeownership rates consistently above 70% since 2013. Average home prices and average rent prices have shown an overall upward trend, reflecting the dynamic nature of Hampton's real estate market.
The relationship between homeownership rates and average home prices in Hampton reveals an interesting pattern. In 2013, the homeownership rate was 75% with an average home price of $84,272. As average home prices steadily increased, reaching $115,321 in 2019, the homeownership rate remained relatively stable, peaking at 78% in 2015 and 2019. This suggests that despite rising home values, residents of Hampton continued to prioritize homeownership. The most recent data from 2022 shows a slight increase in homeownership to 80%, coinciding with an average home price of $168,947, indicating a strong desire for property ownership even as prices climbed.
Federal interest rates have played a role in shaping homeownership trends in Hampton. From 2013 to 2015, when interest rates were exceptionally low (0.11% to 0.13%), homeownership rates in Hampton increased from 75% to 78%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, even as interest rates began to rise more significantly from 2016 onwards, Hampton maintained high homeownership rates, suggesting other local factors may have influenced the community's preference for owning homes.
Renter percentages and average rent prices in Hampton have shown some volatility. In 2013, the renter-occupied percentage was 25% with an average rent of $464. By 2018, the renter percentage increased slightly to 27%, corresponding with a significant jump in average rent to $1,054. Interestingly, despite the substantial increase in average rent, the renter percentage decreased to 22% in 2019 and remained at that level through 2021, with average rent continuing to rise to $1,181. This trend suggests that as renting became more expensive, some residents may have transitioned to homeownership, particularly given the relatively high homeownership rates in the area.
Looking at the most recent data, the average home price in Hampton reached $175,499 in 2023 and further increased to $185,368 in 2024. These figures represent a continuation of the upward trend in home values observed over the past decade. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, Hampton's housing market has remained robust, with home prices continuing to appreciate.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Hampton will continue to rise, albeit potentially at a more moderate pace. Given the historical data and current market conditions, average home prices could potentially reach the $210,000 to $230,000 range by 2029. Average rent prices are also expected to increase, potentially surpassing $1,500 per month within the next five years if current trends persist.
In summary, Hampton has demonstrated a strong preference for homeownership, maintaining high rates even in the face of rising home prices and fluctuating interest rates. The community has shown resilience in its housing market, with both average home prices and average rent prices experiencing significant growth over the past decade. The continued upward trajectory of home values, even amid higher interest rates, suggests a sustained demand for housing in this Tennessee community.
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