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Hearthstone's Shifting Landscape: Home Values Soar as Ownership Rates Fluctuate
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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
Hearthstone, a vibrant neighborhood in Nashville-Davidson metropolitan government, Tennessee, has experienced significant changes in homeownership rates and property values over the past decade. The community has seen a general trend of decreasing homeownership percentages, while average home prices have steadily increased. Average rent prices have fluctuated but shown an overall upward trajectory.
The homeownership rate in Hearthstone has experienced a notable decline from 2013 to 2022. In 2013, 83% of residents were homeowners, but by 2022, this figure had dropped to 64%. Conversely, average home prices have shown a consistent upward trend. In 2013, the average home price was $330,874, which increased dramatically to $733,310 by 2022, representing a 121.6% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Hearthstone. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.09% to 0.4%), homeownership rates remained high, peaking at 93% in 2017. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined. This trend aligns with the general principle that lower interest rates encourage homeownership due to more affordable financing options.
The percentage of renters in Hearthstone has increased from 17% in 2013 to 36% in 2022. During this period, average rent prices have shown volatility but with an overall upward trend. In 2013, the average rent was $1,351, which increased to $1,871 by 2017, representing a 38.5% increase. However, rent prices then decreased to $1,398 in 2022, possibly due to increased housing supply or economic factors. The population growth from 743 in 2013 to 1,097 in 2022 may have contributed to the increased demand for rental properties.
As of 2024, the average home price in Hearthstone has reached $763,627, continuing the upward trend observed in previous years. This represents a 4.1% increase from the 2022 average of $733,310. The federal interest rate for 2024 stands at 5.33%, which is significantly higher than the rates seen in the past decade. This elevated interest rate may impact homeownership rates and property values in the coming years.
Looking ahead, our predictive models suggest that average home prices in Hearthstone will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We anticipate average home prices could reach approximately $850,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $1,700 per month by 2029, driven by population growth and housing demand.
In summary, Hearthstone has experienced a shift towards more renters and fewer homeowners over the past decade, coinciding with substantial increases in average home prices. The interplay between federal interest rates, property values, and homeownership rates has been evident, with higher interest rates correlating with lower homeownership percentages. As the neighborhood continues to evolve, it will be crucial to monitor these trends and their impact on the community's demographics and housing market dynamics.
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