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Tupelo, Oklahoma: A Small City with High Homeownership and Rising Home Values
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
Tupelo, a small city in Oklahoma, has experienced fluctuating population and housing trends over the past decade. The city's homeownership rates have remained relatively high, while average home prices and rent have shown an upward trajectory. This analysis will explore the intricate relationship between these factors and their impact on Tupelo's housing market.
Homeownership rates in Tupelo have remained consistently high, ranging from 83% to 89% between 2013 and 2022. During this period, average home prices have shown a significant upward trend. In 2013, the average home price was $62,268, which increased to $121,972 by 2022, representing a 95.9% increase over nine years. Notably, the most substantial growth occurred between 2020 and 2022, with average home prices rising from $82,435 to $121,972, a 48% increase in just two years.
The relationship between federal interest rates and homeownership rates in Tupelo appears to follow the general trend of lower interest rates encouraging homeownership. For instance, in 2020, when federal interest rates dropped to 0.38%, Tupelo's homeownership rate increased to 87%. However, as interest rates began to rise in 2022 to 1.68%, there was a slight decrease in homeownership to 86%.
Renter percentages in Tupelo have remained relatively low, fluctuating between 11% and 17% from 2013 to 2022. Average rent prices have shown a steady increase during this period. In 2013, the average rent was $507, which rose to $786 by 2022, representing a 55% increase over nine years. The most significant jump occurred between 2015 and 2016, with average rent increasing from $547 to $629, a 15% rise in a single year.
In 2023 and 2024, Tupelo's housing market showed signs of stabilization. The average home price in 2023 was $119,628, a slight decrease from 2022. This trend continued into 2024, with the average home price at $119,183. Interestingly, federal interest rates continued to rise, reaching 5.02% in 2023 and 5.33% in 2024, which may have contributed to the cooling of home prices.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in Tupelo may continue to stabilize or experience modest growth over the next five years. The high interest rates may dampen rapid price increases, potentially leading to a more balanced market. Average rent prices are likely to continue their upward trajectory, albeit at a slower pace, possibly reaching around $900-$950 by 2029.
In summary, Tupelo's housing market has shown resilience with consistently high homeownership rates despite rising home prices. The recent stabilization in home prices, coupled with increasing interest rates, suggests a potential shift towards a more balanced market in the coming years. The rental market is expected to continue its steady growth, reflecting the city's evolving housing dynamics.
