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University Heights: Rising Home Values and Shifting Ownership Trends Near USM
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
University Heights, a neighborhood in Hattiesburg, Mississippi, has experienced significant changes in its housing market over the past decade. The area has seen a general trend of decreasing homeownership rates coupled with increasing average home prices and fluctuating rental rates. This analysis examines these trends and their implications for the neighborhood's housing dynamics. From 2013 to 2022, University Heights witnessed a notable decline in homeownership rates. In 2013, 45% of residents owned their homes, but by 2022, this figure had dropped to 31%. Despite this decrease in homeownership, average home prices in the area have steadily increased. In 2012, the average home price was $139,539, and by 2022, it had risen to $216,438, representing a 55% increase over this period.
The relationship between federal interest rates and homeownership rates in University Heights appears to follow the general trend observed nationally. Lower interest rates typically encourage homeownership due to more affordable financing options. For instance, when federal interest rates were at historic lows between 2012 and 2016 (ranging from 0.09% to 0.40%), the homeownership rate in the neighborhood remained relatively stable, hovering around 45-51%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined more sharply, falling to 31% by 2022.
The renter population in University Heights has grown considerably, from 55% in 2013 to 69% in 2022. Interestingly, despite this increase in renters, the average rent prices have shown a downward trend in recent years. In 2015, the average rent peaked at $1,057, but by 2022, it had decreased to $693. This decline in rent prices, despite the growing renter population, could be attributed to various factors such as increased housing supply or changes in the local economy.
Looking at the most recent data, the average home price in University Heights continued to rise, reaching $225,754 in 2023 and $235,549 in 2024. This represents a 4.3% increase from 2023 to 2024. Concurrently, federal interest rates have also increased significantly, rising from 5.02% in 2023 to 5.33% in 2024, which may impact future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in University Heights will continue to rise, potentially reaching around $275,000 by 2029. However, the rate of increase may slow down due to higher interest rates. Average rent prices, which have been declining, may stabilize or see a slight increase, potentially reaching around $750 per month by 2029, as the high homeownership costs could drive more demand for rentals.
In summary, University Heights has experienced a significant shift towards a renter-majority population over the past decade, with homeownership rates declining from 45% to 31%. Despite this trend, average home prices have steadily increased, rising by 55% from 2012 to 2022. The neighborhood has also seen fluctuations in average rent prices, with a recent downward trend despite the growing renter population. These dynamics, coupled with rising interest rates, suggest a complex and evolving housing market in University Heights that warrants continued observation.
