The rental market in zip code 37016 has seen a decline in the percentage of renters, dropping from 16% in 2019 to 10% in 2022. However, average rent prices have increased significantly during this period. In 2019, the average rent was $996, which rose to $1,091 by 2022, an increase of about 9.5%. This increase in rent prices, coupled with the declining percentage of renters, suggests a tightening rental market in the area.

Looking at the most recent data, the average home price in zip code 37016 continued to rise in 2023, reaching $364,885. In 2024, it further increased to $376,072. This upward trend has persisted despite the federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, indicating strong demand in the local housing market.

Based on these trends, we can predict that over the next five years, average home prices in zip code 37016 are likely to continue their upward trajectory, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the limited supply of rental properties in the area. However, the rate of increase may moderate as the market adjusts to changing economic conditions.

In summary, zip code 37016 has demonstrated a clear trend towards increased homeownership and rising property values. The community has shown resilience in the face of changing interest rates, with both home prices and homeownership rates continuing to climb. The rental market, while shrinking in terms of percentage, has seen significant price increases. These trends point to a robust and dynamic housing market in this Tennessee town, with potential for continued growth in both the ownership and rental sectors.