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Rising Home Values and Declining Ownership: Davies Plantation's Changing Housing Landscape
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
Davies Plantation, a neighborhood in Bartlett, Tennessee, has undergone significant changes in its housing market over the past decade. This suburban community has experienced fluctuations in homeownership rates, with a general trend of decreasing owner-occupancy in recent years. Simultaneously, average home prices have shown a steady upward trajectory, while average rent prices have experienced more volatility.
The relationship between homeownership rates and average home prices in Davies Plantation reveals an interesting dynamic. In 2013, the neighborhood had an 86% homeownership rate, with average home prices at $259,350. As home prices steadily increased, reaching $328,409 by 2019, the homeownership rate remained relatively stable at 89%. However, a significant shift occurred from 2020 onwards. Despite average home prices surging to $466,253 in 2022, the homeownership rate dropped dramatically to 74%. This inverse relationship suggests that rising home prices may have priced out potential buyers, leading to a decrease in homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in Davies Plantation. The period from 2013 to 2019 saw historically low interest rates, ranging from 0.11% to 2.16%. This favorable financing environment likely contributed to the stable and high homeownership rates during this time. However, the sharp increase in interest rates to 1.68% in 2022 and 5.02% in 2023 coincided with the significant drop in homeownership rates, falling from 84% in 2020 to 74% in 2022. This trend aligns with the general principle that higher interest rates can deter homeownership due to increased borrowing costs.
The renter population and average rent prices in Davies Plantation have shown notable trends. In 2013, the renter-occupied percentage was 14%, with an average rent of $1,598. As the renter population decreased to 8% in 2017, average rents also declined to $1,452. However, a reversal occurred from 2020 onwards. The renter-occupied percentage increased significantly to 26% by 2022, while average rents fluctuated, reaching $1,227 in 2022. This trend suggests that as homeownership became less attainable, more residents turned to renting, despite the area's population decreasing from 6,575 in 2019 to 5,035 in 2022.
Looking at the most recent data, average home prices in Davies Plantation continued to rise, reaching $478,093 in 2023 and $484,755 in 2024. This upward trend persisted despite the high federal interest rates of 5.02% in 2023 and 5.33% in 2024, indicating strong demand for housing in the area even in a less favorable financing environment.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Davies Plantation will continue to increase, albeit at a potentially slower rate due to high interest rates. By 2029, average home prices could reach approximately $550,000 to $600,000. Average rent prices are expected to stabilize and potentially increase moderately, possibly reaching $1,400 to $1,500 per month by 2029, as the rental market adjusts to the shifting balance between homeownership and renting.
In summary, Davies Plantation has experienced a significant transformation in its housing market. The most crucial discoveries include the inverse relationship between rising home prices and declining homeownership rates, the substantial impact of federal interest rates on homeownership trends, and the recent surge in the renter population. These trends reflect a changing landscape where housing affordability and market dynamics are reshaping the community's residential composition.
