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Oak Ridge, Tennessee: Home Values Double Amid Atomic City's Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Oak Ridge, Tennessee, known for its historical significance as a key site in the Manhattan Project during World War II, has experienced notable shifts in its housing market over the past decade. This city of approximately 40,000 residents has seen fluctuations in homeownership rates and steady increases in both average home prices and average rent prices.
The homeownership rate in Oak Ridge has shown a gradual upward trend since 2013. In 2013, 67% of housing units were owner-occupied. This percentage dipped slightly to 65% in 2015 and 2016 but has since rebounded and increased. By 2022, the homeownership rate reached 69%, indicating a growing preference for homeownership in the city. This trend correlates with the rise in average home prices, which have more than doubled from $127,733 in 2013 to $258,507 in 2022.
The relationship between federal interest rates and homeownership rates in Oak Ridge presents an interesting dynamic. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 2.16%), the homeownership rate only increased modestly from 67% to 68%. However, as interest rates began to rise more sharply in 2022 to 1.68%, the homeownership rate continued its upward trend to 69%. This suggests that local factors, such as job market stability and overall economic conditions, may have played a more significant role in homeownership decisions than interest rates alone.
Renter percentages in Oak Ridge have shown a corresponding decline as homeownership rates increased. In 2013, 33% of housing units were renter-occupied. This percentage peaked at 35% in 2015 before gradually decreasing to 31% by 2022. Despite this decline in the proportion of renters, average rent prices have steadily increased. The average rent rose from $876 in 2013 to $1,040 in 2022, representing an 18.7% increase over nine years. This upward trend in rent prices, despite a decreasing percentage of renters, may indicate a tightening rental market with higher-quality or more desirable rental properties commanding premium prices.
Looking at the most recent data, the average home price in Oak Ridge continued its upward trajectory, reaching $279,440 in 2023 and $298,985 in 2024. This represents a significant 15.7% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $350,000 to $375,000 by 2029. Average rent prices are also expected to continue their upward trend, potentially reaching $1,200 to $1,300 per month by 2029, assuming current economic conditions and housing market dynamics persist.
In summary, Oak Ridge has experienced a steady increase in homeownership rates, coupled with significant growth in average home prices and rent prices. The city's housing market has shown resilience and attractiveness to buyers, even in the face of rising interest rates. The continued upward trajectory of both home prices and rent suggests a strong demand for housing in Oak Ridge, likely driven by its unique history, economic opportunities, and quality of life factors.
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