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Thompson's Station: Rising Home Values and Shifting Ownership in a Growing Tennessee Town
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
Thompson's Station, a growing town in Tennessee, has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the evolving real estate landscape of this community.
From 2013 to 2022, Thompson's Station saw a notable shift in homeownership rates. In 2013, the town boasted a high 91% homeownership rate. However, by 2022, this figure had decreased to 77%, indicating a growing trend towards renting. Concurrently, average home prices in the area saw substantial growth. In 2013, the average home price was $271,822, which more than doubled to $687,154 by 2022. This sharp increase in home prices likely contributed to the declining homeownership rates as housing became less affordable for many residents.
The relationship between federal interest rates and homeownership rates in Thompson's Station presents an interesting dynamic. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.83%), homeownership rates continued to decline. This suggests that other factors, such as rapidly increasing home prices, may have outweighed the potential benefits of low interest rates for prospective homebuyers in the area.
As homeownership rates decreased, the percentage of renters in Thompson's Station increased from 9% in 2013 to 23% in 2022. During this period, average rent prices fluctuated but showed an overall upward trend. In 2013, the average rent was $1,896, which decreased to $1,655 in 2016 before rising again to $1,845 in 2022. The increase in the renter population, coupled with rising rent prices, indicates growing demand for rental properties in the area, likely driven by the town's population growth from 12,758 in 2013 to 22,088 in 2022.
Looking at more recent data, the average home price in Thompson's Station slightly decreased from $687,154 in 2022 to $682,948 in 2023, before increasing again to $699,715 in 2024. This recent uptick in home prices coincides with higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may further impact affordability and homeownership trends in the coming years.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Thompson's Station will continue to rise, albeit at a potentially slower rate than observed in the past decade. This projection is based on the consistent upward trend seen from 2013 to 2024, tempered by recent market fluctuations and higher interest rates. Average rent prices are also expected to increase over the next five years, driven by the growing renter population and overall demand for housing in this expanding town.
In summary, Thompson's Station has experienced a significant shift in its housing market dynamics over the past decade. The town has seen a decrease in homeownership rates alongside substantial increases in average home prices. The rental market has grown, with both the percentage of renters and average rent prices showing upward trends. These changes reflect the town's rapid population growth and evolving real estate landscape, with predictions suggesting continued growth in both home and rent prices in the coming years.
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