Loading Content...
Rising Home Values and Shifting Ownership in Perry Heights, Nashville
_tennessee%2Fen-zillow-median-rent-percent-owner-occupied-tennessee-nashville-davidson-metropolitan-government-(balance)-perry-heights.webp%3F&w=3840&q=75)
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Perry Heights, a small neighborhood in Nashville-Davidson, Tennessee, has experienced significant changes in its housing market over the past decade. The area has seen notable fluctuations in population and homeownership dynamics, accompanied by substantial increases in both average home prices and rent.
The relationship between homeownership rates and average home prices in Perry Heights has shown intriguing trends. In 2013, the homeownership rate was 50%, with an average home price of $121,286. As average home prices steadily increased, reaching $169,809 in 2016, the homeownership rate declined to 37%. However, this trend reversed in recent years. By 2022, the homeownership rate had climbed to 58%, despite average home prices rising to $348,545. This suggests that factors beyond price, such as local economic conditions or demographic shifts, may have influenced homeownership rates more significantly.
Federal interest rates appear to have had some impact on homeownership rates in Perry Heights. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates paradoxically decreased. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates stabilized around 40%. Interestingly, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a substantial increase in homeownership to 58% and 61% respectively, potentially reflecting increased affordability of mortgages.
Renter percentages and average rent prices in Perry Heights have shown a generally inverse relationship to homeownership trends. In 2013, the renter-occupied percentage was 50%, with an average rent of $851. As the renter percentage increased to 63% in 2016, average rent rose to $954. However, by 2022, despite average rent climbing to $1,354, the renter percentage had decreased to 41%. This suggests that rising rent prices may have encouraged some residents to transition to homeownership, especially given the concurrent increase in property values.
In 2023, the average home price in Perry Heights reached $363,509, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $372,209, while interest rates have slightly risen to 5.33%. These figures indicate a continuing upward trend in both home prices and interest rates, which could impact affordability and homeownership rates in the near future.
Looking ahead, predictive models suggest that average home prices in Perry Heights may continue to rise over the next five years, potentially reaching around $450,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,600 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Perry Heights has experienced significant changes in its housing market over the past decade. The neighborhood has seen a remarkable increase in average home prices and rent, with a recent trend towards higher homeownership rates despite rising costs. The interplay between federal interest rates, housing prices, and occupancy trends suggests a complex and dynamic housing market in this Nashville neighborhood.
_tennessee%2Fen-population-population-density-tennessee-nashville-davidson-metropolitan-government-(balance)-cloverhill.webp%3F&w=3840&q=75)
