Loading Content...
Resilient Growth: Benton, Tennessee's Housing Market Trends Amidst Population Changes
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Benton, a charming town in Tennessee, has experienced notable fluctuations in its housing market over the past decade. This small community, covering just 3.03 square miles, has seen interesting shifts in homeownership rates and property values. The overall trend shows a slight decrease in homeownership, coupled with a substantial increase in average home prices and fluctuating average rent prices.
From 2013 to 2022, Benton's homeownership rate experienced minor fluctuations. In 2013, 62% of residents owned their homes. This figure peaked at 67% in 2014 before gradually declining to 60% by 2022. During this same period, average home prices in Benton showed a steady upward trend. In 2013, the average home price was $96,587. By 2022, this figure had more than doubled to $224,495, representing a significant 132% increase over nine years.
The relationship between federal interest rates and homeownership rates in Benton appears to follow expected patterns. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable, hovering around 62-67%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, we observed a slight decline in homeownership rates to 60%.
Renter percentages in Benton have shown a corresponding inverse relationship to homeownership rates. In 2013, 38% of residents were renters. This percentage dipped to 33% in 2014 before gradually increasing to 40% by 2022. Average rent prices, however, have not shown a consistent upward trend like home prices. In 2013, the average rent was $692. It peaked at $726 in 2014 but then fluctuated, reaching $671 by 2022. This represents a modest 3% decrease in average rent over the nine-year period, despite the increase in the renter population.
In 2023 and 2024, Benton's housing market continued its upward trajectory. The average home price in 2023 was $230,947, a further increase of 2.9% from 2022. By 2024, it reached $241,120, representing an additional 4.4% growth. Interestingly, this growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on the observed trends, we can forecast continued growth in average home prices in Benton over the next five years. If the current trajectory holds, average home prices could potentially reach around $300,000 by 2029. However, rent prices may continue to fluctuate, possibly stabilizing around $700-$750 per month, assuming no major economic shifts.
In summary, Benton has witnessed a remarkable increase in average home prices over the past decade, despite a slight decrease in homeownership rates. The rental market has shown more stability in pricing, even as the percentage of renters has increased. The town's ability to maintain rising property values, even in the face of increasing interest rates, suggests a robust local housing market with potential for continued growth.
