Conversely, the percentage of renters in Taylor has decreased over time, dropping from 37% in 2015 to 26% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $1,072, which fluctuated over the years but ultimately reached $979 in 2022. It's worth noting that while the renter population decreased, the overall population of Taylor grew from 19,306 in 2015 to 20,467 in 2022, suggesting that the housing market has been able to absorb new residents primarily through homeownership rather than rentals.

Looking at the most recent data, 2023 saw a slight decrease in average home prices to $315,791, followed by a further dip to $307,000 in 2024. This cooling in the housing market coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and could potentially slow down the rapid growth in homeownership rates observed in previous years.

Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Taylor may stabilize or experience moderate growth, assuming interest rates remain elevated. The current high interest rate environment could lead to a temporary slowdown in home price appreciation. For rent prices, we expect a gradual increase over the next five years, driven by the city's continued population growth and the potential shift of some prospective buyers to the rental market due to higher mortgage rates.

In summary, Taylor has experienced a significant increase in homeownership rates and average home prices over the past decade, supported by low interest rates and population growth. The recent rise in interest rates may lead to a more balanced housing market in the coming years, with potentially slower growth in home prices and a stabilization of the rental market. These trends reflect Taylor's evolving economic landscape and its attractiveness as a residential destination in Texas.