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Pearl's Housing Market: Rising Home Values and Shifting Ownership 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
Pearl, Mississippi, is a growing suburban community with a population of 32,468 as of 2022. Located in Rankin County, this city has experienced notable changes in homeownership rates and housing prices over the past decade. The overall trend shows a slight decrease in homeownership, coupled with significant increases in both average home prices and average rent prices.
The homeownership rate in Pearl has seen a modest decline from 64% in 2013 to 62% in 2022. During this same period, average home prices have shown a substantial increase. In 2012, the average home price was $103,185, and by 2022, it had risen to $173,475, representing a 68% increase over a decade. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Pearl. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable, fluctuating between 59% and 64%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate stabilized around 62-63%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Pearl has increased slightly from 33% in 2013 to 38% in 2022. Correspondingly, average rent prices have risen from $817 in 2013 to $991 in 2022, a 21% increase. This upward trend in both renter percentage and average rent prices suggests a growing demand for rental properties, possibly driven by the city's population growth from 29,217 in 2013 to 32,468 in 2022.
In 2023 and 2024, Pearl has continued to see growth in average home prices. The average home price reached $186,274 in 2023 and further increased to $187,608 in 2024. This represents a 7.4% increase from 2022 to 2023 and a modest 0.7% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Looking ahead, based on the historical data and current trends, we can expect average home prices in Pearl to continue rising, albeit at a potentially slower rate due to higher interest rates. A conservative estimate suggests average home prices could reach around $200,000 to $210,000 by 2029. Average rent prices are also likely to continue their upward trajectory, potentially reaching $1,100 to $1,200 per month in the next five years, driven by population growth and increased demand for rental properties.
In summary, Pearl has experienced a slight decrease in homeownership rates coupled with significant increases in both average home prices and average rent prices over the past decade. The interplay between federal interest rates, population growth, and housing market dynamics has shaped these trends. As the city continues to grow, it will likely face challenges in maintaining affordable housing options for both homeowners and renters.
