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Home Values and Ownership Trends in Zip Code 37040: Clarksville's Resilient Housing Market
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
Zip code 37040, located in Clarksville, Tennessee, has experienced significant demographic and housing market changes over the past decade. This area has seen a steady increase in population and notable shifts in homeownership rates, average home prices, and average rent prices.
The homeownership rate in zip code 37040 has remained relatively stable, with slight fluctuations between 55% and 58% from 2013 to 2022. In 2013, the homeownership rate was 57%, and it maintained this level through 2022, with a brief dip to 55% in 2016 and 2017. During this same period, average home prices in the area saw a significant increase. In 2013, the average home price was $151,128, and by 2022, it had risen to $276,520, representing an impressive 83% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. Despite historically low interest rates between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates actually decreased slightly from 57% to 55%. However, as interest rates began to rise from 2017 to 2019 (1.00% to 2.16%), homeownership rates rebounded to 57%. This suggests that other local factors may have had a more significant influence on homeownership than interest rates alone in this particular area.
Renter percentages in zip code 37040 have shown a inverse relationship to homeownership rates, naturally. The percentage of renters increased from 43% in 2013 to 45% in 2016 and 2017, before settling back to 42% in 2022. Average rent prices have generally increased over this period, albeit with some fluctuations. In 2013, the average rent was $977, rising to $1,054 in 2019, and reaching $1,017 in 2022. It's worth noting that the population of the zip code grew significantly during this time, from 46,138 in 2013 to 63,226 in 2022, which likely contributed to the increased demand for rental properties and the overall rise in average rent prices.
Looking at the most recent data, average home prices in zip code 37040 continued to rise in 2023 and 2024, reaching $287,553 and $293,668 respectively. This represents a 6.2% increase from 2022 to 2024. Interestingly, this growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 37040 to continue their upward trajectory, potentially reaching around $350,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,200 per month within the same timeframe. These projections are based on the historical growth patterns observed in the area and assume relatively stable economic conditions.
In summary, zip code 37040 in Clarksville, Tennessee, has demonstrated a robust and growing housing market over the past decade. The area has maintained a relatively stable homeownership rate while experiencing significant increases in both average home prices and average rent prices. Despite rising interest rates in recent years, the local housing market has shown resilience, with continued growth in property values. As the population continues to expand, we can expect further pressure on both the housing and rental markets, likely leading to continued price appreciation in the coming years.
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