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Washington Hills: Rising Home Values and Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Washington Hills, a neighborhood in Chattanooga, Tennessee, has experienced significant changes in its housing market over the past decade. The area has seen a general decline in homeownership rates while average home prices have steadily increased. This inverse relationship has reshaped the neighborhood's residential landscape.
From 2015 to 2022, homeownership in Washington Hills decreased from 72% to 59%. During the same period, average home prices rose substantially from $111,602 to $217,078, marking a 94.5% increase. This trend suggests that rising home prices may have made homeownership less attainable for some residents. For example, in 2016, when homeownership was at 71%, the average home price was $121,876. By 2019, as homeownership dropped to 63%, the average home price had climbed to $151,978.
Federal interest rates have influenced homeownership trends in Washington Hills. In 2015, with interest rates at a low 0.13%, the neighborhood saw its peak homeownership rate of 72%. As interest rates rose to 1.83% in 2018, homeownership declined to 67%. However, this relationship is not always straightforward. In 2020, despite historically low interest rates of 0.38%, homeownership remained at 64%, likely due to other economic factors and the sharp increase in average home prices to $163,137.
The percentage of renters in Washington Hills increased from 28% in 2015 to 41% in 2022, correlating with changes in average rent prices. In 2015, the average rent was $945, rising to $993 in 2016 as the renter percentage increased to 29%. There was a dip in average rent to $805 in 2018, coinciding with a slight increase in the renter population to 33%. By 2022, as the renter percentage reached 41%, the average rent had decreased to $849, possibly reflecting increased housing supply or economic pressures.
In 2023, the average home price in Washington Hills reached $231,053, with federal interest rates at 5.02%. Moving into 2024, the average home price further increased to $238,491, while interest rates rose slightly to 5.33%. These figures indicate a continuing upward trend in home values, despite higher borrowing costs.
Predictive models suggest that average home prices in Washington Hills may continue to rise over the next five years, potentially reaching around $280,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,100 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Washington Hills has experienced a significant shift in its housing landscape over the past decade. The decline in homeownership rates, coupled with rising average home prices, suggests a changing demographic and economic profile for the neighborhood. The increase in the renter population, along with fluctuating rent prices, indicates a dynamic rental market. As home prices continue to rise and interest rates remain elevated, the neighborhood may see further changes in its residential composition and housing affordability in the coming years.
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