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Helenwood: Rising Home Values and Resilient Ownership in a Tennessee 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
Helenwood, a charming community in Tennessee, has experienced notable shifts in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the dynamic real estate landscape of this small town. Homeownership in Helenwood has shown significant fluctuations between 2013 and 2022. In 2013, the ownership rate stood at a robust 86%. However, this figure declined steadily over the next few years, reaching its lowest point of 65% in 2018. Interestingly, this period coincided with a steady increase in average home prices. From 2013 to 2018, average home prices rose from $90,704 to $109,550, representing a 20.8% increase. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents during this period.
The relationship between federal interest rates and homeownership rates in Helenwood appears to follow the general trend observed nationally. As interest rates remained relatively low from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates experienced a decline. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Helenwood started to recover. By 2022, the homeownership rate had rebounded to 81%, nearly reaching its 2013 levels.
Renter percentages in Helenwood have mirrored the homeownership trends, rising from 14% in 2013 to a peak of 35% in 2018, before declining to 19% in 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $674, which decreased to $606 by 2017. However, there was a sharp increase to $787 in 2018, coinciding with the highest percentage of renters. Since then, average rent prices have generally declined, reaching $538 in 2022. This trend may be partly attributed to the increasing homeownership rates and the town's fluctuating population, which peaked at 1,692 in 2021 before dropping to 1,277 in 2022.
Looking at the most recent data, average home prices in Helenwood continued to rise in 2023 and 2024, reaching $167,086 and $173,519 respectively. This represents a significant increase from the 2022 average of $166,759. Concurrently, federal interest rates have also increased substantially, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Helenwood will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $200,000 to $220,000. Average rent prices, which have been more volatile, may stabilize or increase slightly, potentially reaching $600 to $650 by 2029, assuming steady population growth and consistent demand for rental properties.
In summary, Helenwood has experienced significant shifts in its housing market over the past decade. The inverse relationship between homeownership rates and average home prices, the impact of federal interest rates on homeownership, and the fluctuations in rental market dynamics highlight the complex interplay of factors shaping the local real estate landscape. As the community continues to evolve, these trends will likely play a crucial role in determining housing affordability and accessibility for residents in the coming years.
