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Hendersonville's Home Values Soar: Lakeside City Maintains Strong Ownership Rates
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
Hendersonville, Tennessee is a vibrant city located just northeast of Nashville. Known for its picturesque landscapes and proximity to Old Hickory Lake, Hendersonville has experienced significant growth over the past decade. The city has maintained a strong homeownership rate while seeing substantial increases in both average home prices and average rent prices.
Homeownership in Hendersonville has remained relatively stable, with a slight increase from 71% in 2013 to 72% in 2022. During this same period, average home prices have seen a dramatic rise. In 2013, the average home price was $216,614, which steadily increased to $502,656 by 2022, representing a 132% increase over nine years. This trend suggests that despite rising home prices, Hendersonville residents have maintained their ability to purchase homes, potentially indicating strong economic conditions and desirable living standards in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates in Hendersonville remained steady at 70-71%. As interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), homeownership actually increased slightly to 71%, suggesting that other factors, such as local economic strength, may have offset the impact of rising interest rates.
Renter percentages in Hendersonville have slightly decreased from 29% in 2013 to 28% in 2022. Despite this small decrease, average rent prices have shown a steady upward trend. In 2013, the average rent was $1,173, which increased to $1,436 by 2022, a 22% rise over nine years. This increase in rent prices, coupled with a steady renter population, indicates a strong demand for rental properties in the area, possibly driven by the city's growing population, which increased from 56,257 in 2013 to 66,432 in 2022.
Looking at the most recent data, the average home price in Hendersonville for 2023 was $499,852, showing a slight decrease from 2022. However, in 2024, the average home price has increased slightly to $500,520. This recent stabilization in home prices coincides with higher interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially tempering the rapid price growth seen in previous years.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Hendersonville will continue to rise, but at a more moderate pace than seen in the past decade. The rate of increase may slow due to higher interest rates and potential market stabilization. Average rent prices are also expected to continue their upward trajectory, driven by population growth and the city's desirability, but the rate of increase may be more gradual than in recent years.
In summary, Hendersonville has demonstrated a robust housing market characterized by strong homeownership rates and significant appreciation in both home values and rent prices. The city's ability to maintain high homeownership levels despite rising prices suggests a resilient local economy and continued attractiveness to residents. While recent data shows some stabilization in home prices, the overall trend points to continued growth in both the ownership and rental markets, albeit potentially at a more moderate pace in the coming years.
