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Murfreesboro's Housing Market: Rising Home Values and Shifting Ownership in a Growing Tennessee City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Murfreesboro, a vibrant city in Tennessee, has experienced significant growth and dynamic shifts in its housing market over the past decade. Known for its rich Civil War history and home to Middle Tennessee State University, Murfreesboro has seen a steady increase in population, accompanied by fluctuating homeownership rates and rising average home and rent prices. The trend in homeownership rates in Murfreesboro has shown notable variations between 2013 and 2022. In 2013, the homeownership rate stood at 53%, which remained relatively stable until 2016 when it peaked at 54%. However, a gradual decline followed, reaching a low of 49% in 2018. Interestingly, this period coincided with a significant rise in average home prices, which increased from $169,059 in 2013 to $258,514 in 2018, representing a 52.9% increase. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Murfreesboro. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1%, which coincided with relatively stable homeownership rates. As interest rates began to rise from 2016 onwards, reaching 2.16% by 2019, there was a noticeable decline in homeownership percentages. However, the trend reversed dramatically in 2020 and 2021, with homeownership surging to 61% in 2021 despite rising home prices, likely influenced by the return to near-zero interest rates during the pandemic.
Renter percentages in Murfreesboro have generally mirrored the inverse of homeownership rates. The renter population peaked at 51% in 2018, coinciding with the lowest homeownership rate. Average rent prices have shown a consistent upward trend, rising from $866 in 2013 to $1,313 in 2022, a 51.6% increase. This rise in rent prices occurred alongside population growth, with the city's population expanding from 117,039 in 2013 to 162,402 in 2022, a 38.8% increase. The growing population likely contributed to increased demand for rental properties, driving up average rent prices.
In 2023 and 2024, Murfreesboro's housing market showed signs of stabilization. The average home price in 2023 was $406,545, slightly decreasing to $409,644 in 2024, indicating a potential cooling of the rapid price growth seen in previous years. This stabilization occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, predictive models suggest that Murfreesboro's housing market will continue to evolve. Over the next five years, average home prices are projected to increase at a more moderate pace, potentially reaching around $450,000 by 2029. Average rent prices are expected to follow a similar trend, potentially surpassing $1,500 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Murfreesboro's housing market has been characterized by rising home and rent prices, fluctuating homeownership rates, and a growing population. The interplay between federal interest rates, population growth, and housing affordability has significantly influenced these trends. As the city continues to grow, balancing housing affordability with market demands will likely remain a key challenge for Murfreesboro's housing sector.
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