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Rising Home Values and High Ownership Rates: A Look at Zip Code 38632 in Hernando, Mississippi
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
Zip code 38632, located in Hernando, Mississippi, has experienced significant growth and change over the past decade. This area has seen a consistent trend of high homeownership rates, with average home prices steadily increasing alongside a fluctuating rental market.
The homeownership rate in zip code 38632 has remained remarkably stable, hovering around 85% from 2013 to 2022. This high rate of ownership coincides with a substantial increase in average home prices. In 2013, the average home price was $194,208, and by 2022, it had risen to $325,605, representing a 67.7% increase over nine years. This trend suggests a strong correlation between sustained high homeownership rates and rising property values in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 82-85%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased slightly, reaching 87% in 2019. This suggests that other local factors, such as strong economic conditions or housing demand, may have outweighed the impact of rising interest rates on homeownership in this zip code.
Renter percentages in zip code 38632 have fluctuated between 13% and 17% from 2013 to 2022. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $898, which increased to a peak of $1,194 in 2021 before dropping to $1,019 in 2022. This represents a 13.5% increase in average rent from 2013 to 2022, despite the recent decrease. The population growth from 24,571 in 2013 to 30,462 in 2022 may have contributed to the overall upward pressure on rent prices, even with the fluctuations observed.
Looking at more recent data, the average home price in zip code 38632 continued to rise, reaching $332,027 in 2023 and $336,747 in 2024. This represents a modest 1.4% increase from 2023 to 2024, indicating a potential slowdown in the rapid price growth observed in previous years. Notably, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends and property values.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 38632 will continue to rise, albeit at a more moderate pace. Based on historical data and current economic conditions, we project average home prices could reach approximately $375,000 to $400,000 by 2029. For average rent prices, the forecast suggests a potential increase to around $1,300 to $1,400 per month over the next five years, assuming continued population growth and economic stability in the area.
In summary, zip code 38632 has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing property values. The area has shown resilience in maintaining strong ownership levels despite fluctuations in interest rates and economic conditions. While rent prices have been more volatile, they have generally trended upward alongside population growth. The recent slowdown in home price appreciation and rising interest rates may signal a shift towards a more balanced market in the coming years.
