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Horn Lake, Mississippi: Rising Home Values and Shifting Ownership Trends in Memphis' Suburban Neighbor
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
Horn Lake, Mississippi, a city in DeSoto County just south of Memphis, Tennessee, is known for its proximity to the Mississippi River and suburban charm. The city has experienced notable changes in its housing market over the past decade, including fluctuations in homeownership rates and significant increases in average home prices and rent.
From 2013 to 2022, Horn Lake saw a slight decline in homeownership rates, dropping from 67% to 63%. During this same period, average home prices in the city grew substantially, rising from $92,543 in 2013 to $179,915 in 2022, marking a 94% increase over nine years.
The relationship between federal interest rates and homeownership rates in Horn Lake follows a general trend observed nationwide. From 2013 to 2016, when interest rates were historically low (0.11% to 0.40%), homeownership rates in Horn Lake declined from 67% to 62%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates stabilized and slightly increased to 63% by 2022.
The renter population in Horn Lake increased as homeownership rates declined, rising from 33% in 2013 to 37% in 2022. Average rent prices also increased during this period, though not as dramatically as home prices. The average rent rose from $1,027 in 2013 to $1,152 in 2022, an increase of about 12% over nine years. This moderate increase in rent prices, compared to the substantial rise in home prices, may have contributed to the slight shift towards renting in the city.
In 2023 and 2024, Horn Lake's housing market continued to evolve. The average home price reached $188,453 in 2023 and further climbed to $193,165 in 2024, representing a 7.5% increase from 2022 to 2024. Federal interest rates rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting housing affordability and market dynamics.
Based on observed trends, average home prices in Horn Lake are likely to continue their upward trajectory over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase, possibly at a rate similar to or slightly higher than the past decade's trend, as demand for rental properties may increase if homeownership becomes less affordable.
In summary, Horn Lake has experienced a slight shift from homeownership to renting over the past decade, accompanied by substantial increases in average home prices and moderate rises in average rent prices. The city's housing market has shown resilience and growth, with recent years seeing continued appreciation in property values despite rising interest rates. These trends suggest a dynamic and evolving housing landscape in Horn Lake, with potential opportunities and challenges for both homeowners and renters in the coming years.
