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Middleton, Tennessee: Housing Market Dynamics Amidst Declining Homeownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Middleton, a small city in Tennessee, has experienced notable shifts in its housing market over the past decade. This analysis examines the trends in homeownership, average home prices, and average rent prices, providing insights into the city's real estate dynamics.
Homeownership rates in Middleton have shown a general decline since 2013, with some fluctuations. In 2013, 80% of residents were homeowners, but this figure dropped to 68% by 2018. However, there has been a slight recovery in recent years, with homeownership reaching 72% in 2022. This trend coincides with significant changes in average home prices. From 2013 to 2022, average home prices in Middleton increased from $81,746 to $157,058, representing a substantial 92% growth over the period.
The relationship between federal interest rates and homeownership rates in Middleton shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates experienced a decline from 80% to 73%. This unexpected trend might be attributed to other local economic factors overriding the typical impact of low interest rates. However, as interest rates began to rise more significantly from 2017 to 2019 (1% to 2.16%), homeownership rates stabilized and even showed a slight increase, reaching 72% by 2022.
Renter percentages in Middleton have generally increased over the years, rising from 20% in 2013 to 28% in 2022. This trend has been accompanied by fluctuations in average rent prices. From 2013 to 2022, average rent increased from $543 to $566, a modest 4.2% increase. Notably, there was a peak in average rent of $629 in 2021, followed by a decrease to $566 in 2022. These changes in the rental market occurred alongside population fluctuations, with Middleton's population decreasing from 2,956 in 2013 to 2,274 in 2022.
In 2023 and 2024, Middleton's housing market continued to evolve. Average home prices rose to $164,708 in 2023 and further increased to $174,436 in 2024, representing a 6% year-over-year growth. This price increase occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in Middleton may continue to rise over the next five years, potentially reaching around $200,000 by 2029 if current trends persist. Average rent prices are also expected to increase moderately, possibly approaching $650 per month within the same timeframe.
In summary, Middleton's housing market has been characterized by rising home prices, fluctuating homeownership rates, and a gradual increase in the proportion of renters. The city has experienced significant home value appreciation despite population decline, indicating a complex interplay of local and broader economic factors shaping its real estate landscape.
