As homeownership rates decreased, the percentage of renters in zip code 38018 increased from 29% in 2013 to 39% in 2022. This shift coincided with a rise in average rent prices, which increased from $1,231 in 2013 to $1,419 in 2022, a 15% increase. The population of the zip code also grew during this period, from 33,992 in 2013 to 37,222 in 2022, potentially contributing to increased demand for rental properties and subsequent rent increases.

In 2023 and 2024, the average home prices in zip code 38018 showed signs of stabilization. The average home price in 2023 was $298,231, a slight increase from 2022, while in 2024 it slightly decreased to $295,558. This leveling off coincides with significantly higher interest rates of 5.02% in 2023 and 5.33% in 2024, which may have cooled the housing market.

Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices may continue to stabilize or experience modest growth, potentially reaching around $320,000 by 2029. Average rent prices could follow a similar trajectory, potentially increasing to approximately $1,600 by 2029. However, these projections are subject to various economic factors and local market conditions.

In summary, zip code 38018 has witnessed a shift towards a more renter-oriented community over the past decade, driven by rising home prices and changing interest rates. The area has experienced substantial growth in both average home values and rent prices, reflecting its changing demographics and economic landscape. The recent stabilization in home prices, coupled with higher interest rates, suggests a potential cooling of the market, which may influence future homeownership rates and rental demand in this Memphis neighborhood.