Loading Content...
South Side, Johnson City: Rising Home Values Amid Declining Ownership
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 Side, a vibrant neighborhood in Johnson City, Tennessee, has experienced significant changes in its real estate market over the past decade. This analysis focuses on the trends in homeownership rates, housing prices, and rental market dynamics from 2013 to 2024, highlighting the shifting landscape of this dynamic area. The homeownership rate in South Side has notably declined from 41% in 2013 to 29% in 2022. This decrease coincides with a substantial increase in average home prices, which rose from $109,075 in 2013 to $200,410 in 2022, marking an 83.7% increase. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents.
Federal interest rates have played a crucial role in shaping homeownership trends in South Side. From 2013 to 2016, interest rates remained relatively low, ranging from 0.1% to 0.4%, and homeownership rates stayed relatively stable between 40% and 43%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined more sharply, falling to 29% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The rental market in South Side has shown interesting trends as well. The percentage of renters increased from 59% in 2013 to 71% in 2022, mirroring the decline in homeownership. Average rent prices have generally trended upward, rising from $631 in 2013 to $708 in 2022, a 12.2% increase. A significant jump in rent occurred between 2020 and 2021, with a 22.3% increase from $691 to $845, coinciding with a period of rapid population growth.
Recent data shows that the average home price in South Side continued its upward trajectory, reaching $219,436 in 2023 and $235,130 in 2024, a further 17.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may continue to pose challenges for potential homebuyers in the neighborhood.
Predictive models forecast that average home prices in South Side will continue to rise over the next five years, potentially reaching around $280,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $900 per month within the same timeframe, assuming the current growth rate continues.
In conclusion, South Side has experienced a significant shift towards a renter-majority population, driven by rising home prices and increasing interest rates. The neighborhood has seen substantial appreciation in property values, with average home prices nearly doubling over the past decade. These trends suggest that South Side is becoming an increasingly competitive and potentially less affordable housing market, particularly for prospective homeowners. The continued rise in both home prices and rents indicates a strong demand for housing in this area of Johnson City, reflecting its desirability and potential for further development.
