Loading Content...
South Fulton, Tennessee: Stable Homeownership Amidst Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
South Fulton, Tennessee, is a small urban community located in the northwestern part of the state. Over the past decade, this city has experienced fluctuations in homeownership rates and seen significant changes in both average home prices and average rent prices. The overall trend shows a slight decrease in homeownership, while average home prices have steadily increased, and average rent prices have shown more variability.
The homeownership rate in South Fulton has experienced minor fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 72%. It reached its peak of 74% in 2014 and 2016 but then gradually declined to 70% by 2022. This slight downward trend in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $71,851. By 2022, it had risen dramatically to $127,638, representing a 77.6% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in South Fulton. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at 72-74%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we saw a slight dip in homeownership to 67% in 2019. Interestingly, despite very low interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership only rebounded slightly to 70-73%, possibly due to economic uncertainties during the pandemic.
The renter population in South Fulton has shown an inverse relationship to homeownership trends, naturally. The percentage of renters increased from 28% in 2013 to 30% in 2022, with some fluctuations in between. Notably, there was a significant spike in the renter population in 2019, reaching 33%. Average rent prices have shown considerable volatility over this period. In 2013, the average rent was $444. It peaked at $567 in 2019, coinciding with the highest percentage of renters, before decreasing to $564 in 2022. This represents a 27% increase in average rent from 2013 to 2022, although the path was not linear.
Looking at the most recent data, average home prices in South Fulton continued their upward trajectory, reaching $136,983 in 2023 and $140,976 in 2024. This represents a 7.3% increase from 2022 to 2023 and a further 2.9% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking the highest rates since 2007. These high interest rates may impact future homeownership rates and housing market dynamics in the city.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in South Fulton will continue to rise, albeit at a potentially slower rate due to high interest rates. By 2029, average home prices could reach approximately $165,000 to $175,000. For average rent prices, considering the historical volatility, we predict a more moderate increase. By 2029, average rents could range from $600 to $650, assuming no major economic disruptions.
In summary, South Fulton has experienced a slight decrease in homeownership rates over the past decade, coupled with a significant increase in average home prices. The rental market has shown more volatility in both occupancy rates and prices. Recent sharp increases in interest rates may influence future homeownership trends and housing affordability in the city. The coming years are likely to see continued growth in both home prices and rents, though potentially at a more moderated pace.
_tennessee%2Fen-population-population-density-tennessee-nashville-davidson-metropolitan-government-(balance)-barnes-cove.webp%3F&w=3840&q=75)
-37206.webp%3F&w=3840&q=75)
