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Rockvale, Tennessee: Rising Home Values and High Ownership Rates in a Growing Community
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
Rockvale, Tennessee, is a small community located in Rutherford County. With a population of 4,222 in 2022 and spanning 4.37 square miles, this charming area has experienced significant changes in homeownership rates and property values over the past decade. The city has maintained a strong preference for homeownership, with rates consistently above 85% throughout the observed period. Average home prices have shown a steady upward trend, while average rent prices have fluctuated more dramatically.
The relationship between homeownership rates and average home prices in Rockvale reveals an interesting dynamic. In 2013, when homeownership was at 92%, the average home price was $179,082. Despite a slight decline in homeownership to 87% by 2017, average home prices continued to rise, reaching $258,217. This trend suggests that even as fewer residents owned homes, property values were appreciating. By 2022, homeownership rebounded to 90%, coinciding with a substantial increase in average home prices to $452,545, indicating a strong correlation between ownership rates and property values.
Federal interest rates have played a crucial role in shaping homeownership trends in Rockvale. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which likely contributed to the high homeownership rates observed during this time. As interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018, there was a slight dip in homeownership to 88%. However, the community's strong preference for homeownership persisted, with rates bouncing back to 90% by 2022, despite the interest rate climbing to 1.68%.
Renter percentages and average rent prices in Rockvale have shown notable fluctuations. In 2013, with only 8% of the population renting, the average rent was $950. As the renter population increased to 13% by 2017, average rent prices skyrocketed to $2,462, indicating a significant demand for rental properties. Interestingly, even as the renter percentage decreased slightly to 10% in 2022, average rent remained high at $2,035, suggesting a sustained demand for rental units despite the preference for homeownership.
In 2023 and 2024, Rockvale continued to experience growth in the housing market. The average home price in 2023 was $454,389, showing a slight increase from the previous year. In 2024, this upward trend continued with average home prices reaching $464,176. Concurrently, federal interest rates rose significantly, hitting 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can expect average home prices in Rockvale to continue their upward trajectory over the next five years. Projecting the current growth rate, average home prices could potentially reach around $550,000 by 2029. Average rent prices, which have shown more volatility, may stabilize around $2,500 to $3,000 per month, assuming the community maintains its current balance between homeowners and renters.
In summary, Rockvale has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing property values. The community has shown resilience in maintaining strong homeownership levels even in the face of rising interest rates and home prices. The rental market, while smaller, has seen significant price increases, reflecting the area's overall desirability. As Rockvale continues to grow, it will be important to monitor how these housing trends evolve, particularly in light of changing economic conditions and interest rates.
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