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Munford, Tennessee: Rising Home Values and Ownership Rates Defy Interest Trends
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
Munford, located in Tennessee, is a vibrant community that has experienced significant changes in its housing market over the past decade. The city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
Homeownership in Munford has shown a notable increase in recent years. In 2013, the homeownership rate stood at 73%, and after some fluctuations, it rose to 81% by 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in Munford was $130,667, which steadily climbed to $251,266 by 2022, representing a remarkable 92% increase over this period. This trend suggests a strong correlation between rising home values and increasing homeownership rates in the city.
The relationship between federal interest rates and homeownership rates in Munford appears to follow established patterns. For instance, when interest rates were relatively low between 2013 and 2016 (ranging from 0.11% to 0.4%), homeownership rates remained stable around 70-73%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Munford surprisingly continued to increase, reaching 81% in 2022. This trend suggests that other local factors may have played a more significant role in driving homeownership than national interest rates during this period.
Renter percentages in Munford have shown an inverse relationship to homeownership rates. In 2013, 27% of the population were renters, which increased to a peak of 33% in 2017 before declining to 19% by 2022. Interestingly, average rent prices have not shown a consistent trend in relation to renter percentages. The average rent in 2013 was $1,135, which remained relatively stable until 2020 when it increased to $1,157. By 2022, the average rent had decreased slightly to $1,060, despite the lower percentage of renters. This suggests that factors beyond supply and demand, such as local economic conditions or housing policies, may be influencing rent prices in Munford.
Looking at the most recent data, the average home price in Munford continued to rise, reaching $265,252 in 2023 and $276,991 in 2024. This represents a 5.5% increase from 2022 to 2023 and a further 4.4% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, standing at 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices in Munford have continued to appreciate, indicating strong local demand for housing.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Munford will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $320,000 to $340,000, assuming a moderate annual growth rate of 3-4%. For average rent prices, we expect a gradual increase, potentially reaching $1,200 to $1,300 by 2029, based on historical trends and accounting for inflation.
In summary, Munford has experienced a significant increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the percentage of renters. Despite rising interest rates, the local housing market has shown resilience, with home prices continuing to appreciate. The disconnect between renter percentages and average rent prices suggests unique local factors influencing the rental market. As Munford continues to evolve, these housing trends will play a crucial role in shaping the city's future development and community dynamics.
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