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Watertown, Tennessee: Rising Home Values Amidst High Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Watertown, a city in Tennessee, has experienced notable shifts in its housing market over the past decade. This small community has seen fluctuations in homeownership rates and significant changes in both average home prices and average rent prices. The city's ownership percentage has generally remained high, while average home prices have shown a strong upward trend, and average rent prices have increased moderately.
The homeownership rate in Watertown has fluctuated between 72% and 80% from 2013 to 2022. Interestingly, as average home prices increased, the percentage of homeowners also tended to rise. For instance, in 2013, the homeownership rate was 72% with an average home price of $140,872. By 2017, as the average home price rose to $205,996, the homeownership rate peaked at 80%. This trend suggests that rising home values may have encouraged more residents to invest in homeownership, possibly viewing it as a sound financial decision.
Federal interest rates have played a role in homeownership trends in Watertown. During periods of low interest rates, such as from 2013 to 2016 when rates were below 0.5%, the city saw an increase in homeownership from 72% to 75%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, even as interest rates began to rise from 2017 onwards, Watertown maintained a high homeownership rate, indicating other factors may also be influencing local housing decisions.
The renter population in Watertown has inversely mirrored the homeownership trends, ranging from 20% to 28% between 2013 and 2022. Average rent prices have shown a general upward trend during this period, rising from $737 in 2013 to $853 in 2022, an increase of about 15.7%. Notably, the highest average rent of $866 was recorded in 2019 when the renter percentage was at 23%. The relationship between rent prices and renter percentages doesn't show a clear correlation, suggesting that local economic factors and housing availability may be more influential in determining renter populations than rent prices alone.
In 2023 and 2024, Watertown's housing market continued to evolve. The average home price in 2023 reached $382,277, a significant increase from previous years. In 2024, this trend continued with average home prices rising to $390,705. Concurrently, federal interest rates increased substantially, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in Watertown will continue to rise over the next five years, potentially reaching around $450,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $950 per month within the same timeframe. However, the rate of increase may slow down if higher interest rates persist, potentially affecting housing demand and affordability.
In summary, Watertown has maintained a high rate of homeownership despite rising home prices, suggesting a strong local preference for home ownership. The city has seen substantial growth in average home values, particularly in recent years, while rent prices have increased more moderately. The interplay between federal interest rates, home prices, and ownership rates highlights the complex dynamics of the local housing market. As Watertown moves forward, balancing housing affordability with the continuing trend of rising property values will likely be a key challenge for the community.
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