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Zip Code 37138: Rising Home Values and Stable Ownership in Nashville's Musical Suburb
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CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 37138, located in Nashville, Tennessee, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a general trend of increasing property values and a slight shift in the balance between owners and renters.
The homeownership rate in zip code 37138 has remained relatively stable, with minor fluctuations. In 2013, the homeownership rate was 81%, and it maintained this level through 2017. However, there was a slight decrease to 78% in 2018 and 2019, before rising back to 80% in 2020 and settling at 79% in 2022. During this period, average home prices in the area saw a substantial increase. In 2013, the average home price was $157,775, and it steadily rose to $375,765 by 2022, representing a 138% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates remained high at 81-82%. As interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, we observed a slight decrease in homeownership rates to 78%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter percentage in zip code 37138 has shown a complementary trend to homeownership rates, ranging from 18% to 22% between 2013 and 2022. Average rent prices have generally increased during this period, with some fluctuations. In 2013, the average rent was $1,183, which increased to $1,454 by 2017, representing a 23% rise. However, there was a slight decline in subsequent years, with the average rent settling at $1,368 in 2022. The population of the zip code grew from 24,960 in 2013 to 27,097 in 2022, which may have contributed to the overall increase in rent prices due to higher demand for housing.
In 2023, the average home price in zip code 37138 reached $383,587, showing continued growth from the previous year. The federal interest rate in 2023 was 5.02%, significantly higher than in recent years. Moving into 2024, the average home price has further increased to $389,385, while the federal interest rate has risen slightly to 5.33%. These figures indicate a continuing upward trend in both home prices and interest rates.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 37138 may continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. We might expect average home prices to reach around $450,000 to $500,000 by 2029. Average rent prices are also likely to increase, potentially reaching $1,500 to $1,600 per month in the same timeframe.
In summary, zip code 37138 has demonstrated strong growth in property values over the past decade, with average home prices more than doubling. Homeownership rates have remained relatively stable despite fluctuations in interest rates, indicating a resilient housing market. The area has also seen moderate increases in average rent prices, reflecting the growing population and demand for housing. As we move forward, the interplay between rising home prices, higher interest rates, and demographic changes will continue to shape the housing landscape in this Nashville-Davidson metropolitan area.
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