Conversely, as homeownership rates increased, the percentage of renters in Sewanee decreased from 47% in 2013 to 23% in 2022. Interestingly, average rent prices remained relatively stable during this period, fluctuating between $999 and $1,121. The peak average rent of $1,121 was observed in 2016 when the renter percentage was 36%. Despite the declining renter population, rent prices have not shown a significant downward trend, possibly due to the limited rental inventory and the presence of a student population associated with the University of the South.

Looking at the most recent data, average home prices in Sewanee reached $432,578 in 2023 and slightly increased to $433,119 in 2024. This represents a modest growth of 0.13% from 2023 to 2024, indicating a potential stabilization in the housing market. Concurrently, federal interest rates rose to 5.02% in 2023 and further to 5.33% in 2024, which could impact future homeownership trends and housing affordability in the area.

Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Sewanee will continue to rise, albeit at a more moderate pace. Given the historical growth rate and recent stabilization, we project average home prices could reach approximately $480,000 to $500,000 by 2029. For rent prices, the forecast suggests a potential increase to around $1,100 to $1,200 per month over the next five years, assuming current trends and local economic factors remain relatively stable.

In summary, Sewanee has experienced a remarkable increase in homeownership rates over the past decade, accompanied by substantial growth in average home prices. The stability of rent prices despite decreasing renter percentages highlights the unique dynamics of this university town. As the community moves forward, the interplay between federal interest rates, local economic factors, and the university's influence will likely continue to shape Sewanee's housing market trends.