The renter population in zip code 37085 has experienced a corresponding decline as homeownership rates increased. The percentage of renters decreased from 16% in 2018 to just 5% in 2022. Despite this decline, average rent prices have shown volatility. Average rent peaked at $891 in 2018, dropped to $858 in 2019, then rose again to $983 in 2020. By 2022, average rent had slightly decreased to $954. This fluctuation in rent prices, despite the declining renter population, may be attributed to factors such as limited rental inventory or changes in the quality of available rental properties.

In 2023, average home prices in zip code 37085 continued to rise, reaching $497,996, a modest increase from the previous year. This growth occurred despite a significant jump in federal interest rates to 5.02%. Moving into 2024, average home prices have maintained their upward trajectory, hitting $510,742, while interest rates have further increased to 5.33%. This continued price appreciation, even in the face of higher borrowing costs, suggests strong underlying demand and potentially limited housing supply in the area.

Looking ahead, predictive models forecast that average home prices in zip code 37085 will continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are expected to stabilize or increase slightly, reflecting the area's strong preference for homeownership and limited rental market. These projections are based on current trends and economic indicators, suggesting a continued robust housing market in this Tennessee zip code.

In summary, zip code 37085 has demonstrated a remarkable increase in homeownership rates, rising from 84% to 95% between 2018 and 2022. This trend has been accompanied by substantial growth in average home prices, which have increased by over 50% during the same period. Despite rising interest rates, the area continues to see appreciation in home values, indicating strong local demand. The rental market has contracted significantly, with only 5% of residents renting as of 2022. These trends point to a housing market heavily favoring ownership, with continued growth expected in the coming years.