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Rising Home Values and Strong Ownership in Sunbright, Tennessee: A Decade of Housing Market Growth
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
Sunbright, located in Tennessee, is a small community that has experienced notable changes in its housing market over the past decade. The city has maintained a consistently high rate of homeownership, with a slight fluctuation in average home prices and rent rates. This analysis will explore the trends in ownership versus renting and their relationship to housing and rent prices in Sunbright.
From 2013 to 2022, Sunbright maintained a strong homeownership rate, ranging between 79% and 85%. This high rate of owner-occupied housing suggests a stable community with long-term residents. During this period, average home prices in Sunbright showed a steady upward trend. In 2013, the average home price was $77,482, which increased to $169,205 by 2022, representing a significant 118% growth over nine years.
The relationship between federal interest rates and homeownership rates in Sunbright appears to follow general economic principles. For instance, in 2013, when interest rates were low at 0.11%, the homeownership rate was 83%. As interest rates remained low through 2020 (0.38%), homeownership rates stayed high, reaching 84% in 2020. This trend supports the notion that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Renter percentages in Sunbright have remained relatively low, fluctuating between 15% and 21% from 2013 to 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $390, which increased to $674 by 2021, representing a 72.8% increase. However, it's worth noting that there were significant fluctuations in between, with the average rent dropping as low as $293 in 2015 before rising again. The city's population grew from 2,550 in 2013 to 3,137 in 2022, which may have contributed to the overall upward pressure on rent prices.
In 2023 and 2024, Sunbright continued to see growth in average home prices. The average home price reached $174,014 in 2023 and further increased to $181,218 in 2024. This represents a 7.1% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the housing market in Sunbright has continued to show strength.
Looking ahead, based on the historical trends and current market conditions, we can project that average home prices in Sunbright will likely continue to rise over the next five years, albeit potentially at a more moderate pace due to higher interest rates. If the current trend continues, average home prices could reach approximately $210,000 to $220,000 by 2029. Average rent prices may also continue to increase, potentially reaching around $750 to $800 per month in the same timeframe, assuming steady population growth and demand for rental properties.
In summary, Sunbright has maintained a high rate of homeownership despite fluctuations in the housing market. The city has seen significant growth in average home prices over the past decade, with this trend continuing even in the face of rising interest rates. Rent prices have also shown an overall upward trend, albeit with some volatility. These trends suggest a robust and growing housing market in Sunbright, with potential for continued growth in both home values and rental rates in the coming years.
