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Home Values Double in Hickman, Tennessee: A Decade of Housing Market Shifts
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
Hickman, Tennessee, is a small community that has experienced notable changes in its housing market over the past decade. The city has seen a general trend of increasing homeownership rates, rising average home prices, and fluctuating average rent prices. This analysis will explore these trends and their relationships in detail. The percentage of owner-occupied homes in Hickman has shown a steady increase from 2013 to 2022. In 2013, 78% of homes were owner-occupied, and this figure rose to 85% by 2022. This upward trend in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $122,869, and by 2022, it had more than doubled to $315,045. This strong positive correlation between homeownership rates and average home prices suggests that despite rising costs, more residents were able to purchase homes.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with the increase in homeownership rates in Hickman, as more affordable financing options likely encouraged home purchases. The slight dip in homeownership to 74% in 2016 may be attributed to the interest rate increase to 0.4% that year, though the rate quickly recovered and continued to rise in subsequent years.
As homeownership increased, the percentage of renters in Hickman decreased from 21% in 2013 to 15% in 2022. Interestingly, despite the declining renter population, average rent prices saw a significant increase. In 2013, the average rent was $456, and by 2022, it had more than doubled to $943. This trend suggests that while fewer people were renting, those who did rent were paying substantially more. The population growth from 1,176 in 2013 to 1,419 in 2022 may have contributed to the increased demand for rental properties, driving up prices despite the smaller renter pool.
In 2023 and 2024, the housing market in Hickman showed signs of stabilization. The average home price slightly decreased to $308,626 in 2023 but then increased to $318,198 in 2024. This slight fluctuation occurred alongside a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to the more modest growth in home prices compared to previous years.
Looking ahead, predictive models suggest that average home prices in Hickman will continue to rise over the next five years, albeit at a slower pace than observed in the past decade. Average rent prices are also expected to increase, potentially reaching $1,200 to $1,300 per month by 2029. However, the rate of increase may slow down as the market adjusts to the current economic conditions and higher interest rates.
In summary, Hickman has experienced a significant shift towards homeownership, with a corresponding increase in average home prices. The rental market, while shrinking in terms of occupancy, has seen substantial price increases. The relationship between federal interest rates and homeownership rates has been evident, with lower rates generally supporting higher homeownership. As the community continues to grow and evolve, these housing market trends will likely play a crucial role in shaping its future development and demographics.
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