Home Values and Ownership in Zip Code 37830: Oak Ridge's Manhattan Project Legacy Area Sees Steady Growth
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Zip code 37830, located in Oak Ridge, Tennessee, has experienced significant changes in homeownership rates and housing prices over the past decade. This area, known for its historical connection to the Manhattan Project, has shown a gradual increase in homeownership while witnessing substantial growth in average home prices and rent.
The homeownership rate in zip code 37830 has shown a slight upward trend from 2013 to 2022. In 2013, the owner-occupied rate was 62%, which increased to 64% by 2022. This 2% increase in homeownership coincided with a dramatic rise in average home prices. In 2013, the average home price was $128,535, which more than doubled to $259,710 by 2022, representing a 102% increase over nine years. This significant appreciation in home values may have encouraged more residents to invest in homeownership, despite the rising prices.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 37830. From 2013 to 2016, interest rates remained below 0.5%, corresponding with a period of relative stability in homeownership rates. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a noticeable increase in homeownership from 61% to 64%. This counter-intuitive trend might be attributed to residents rushing to purchase homes before rates climbed further. The dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight dip in homeownership to 62% and 63% respectively, possibly due to economic uncertainties during the pandemic.
Renter percentages in zip code 37830 have fluctuated inversely to homeownership rates, decreasing from 38% in 2013 to 36% in 2022. During this period, average rent prices increased from $913 in 2013 to $994 in 2022, an 8.9% rise. Interestingly, the highest average rent of $1,027 was recorded in 2021, coinciding with a slight increase in the renter percentage to 37%. The population growth from 29,188 in 2013 to 31,489 in 2022 may have contributed to the overall increase in rent prices due to higher housing demand.
In 2023, the average home price in zip code 37830 reached $280,618, a 8% increase from 2022, while federal interest rates rose to 5.02%. As of 2024, the average home price has further increased to $300,246, marking a 7% growth from 2023, with interest rates slightly higher at 5.33%. These figures indicate a continuing upward trend in both home prices and interest rates.
Looking ahead, predictive models suggest that average home prices in zip code 37830 may continue to rise over the next five years, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. However, the rate of increase may slow down compared to the rapid growth seen in recent years.
In summary, zip code 37830 has experienced a trend of increasing homeownership rates alongside significant growth in average home prices. The interplay between federal interest rates and homeownership rates has been complex, with periods of low rates not always directly correlating to higher ownership. Rent prices have shown more moderate growth compared to home prices, but both have trended upward. The continued rise in home prices and interest rates in 2023 and 2024 suggests ongoing market strength, with predictions indicating further appreciation in both home values and rent prices over the next five years.
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