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Zip Code 37205: Nashville's Dynamic Real Estate Market with Average Home Values Approaching $1 Million
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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 37205, located in Nashville, Tennessee, is a dynamic area that has experienced significant changes in homeownership rates and property values over the past decade. This analysis will explore the trends in ownership percentages, average home prices, and average rent prices in this vibrant community. The homeownership rate in zip code 37205 has remained relatively stable, fluctuating between 68% and 70% from 2013 to 2022. During this period, average home prices have shown a substantial upward trend. In 2013, the average home price was $430,536, which steadily increased to $973,316 by 2022, representing a remarkable 126% growth over nine years. This significant appreciation in home values did not lead to a notable decrease in homeownership rates, suggesting a resilient and affluent local market.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 37205. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.40%), homeownership rates remained stable at around 69-70%. As interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), homeownership rates showed slight fluctuations but generally maintained their levels. This stability in homeownership despite rising interest rates and home prices indicates a strong local real estate market and potentially high-income levels among residents.
Renter percentages in zip code 37205 have shown a slight increase over time, moving from 29% in 2013 to 31% in 2022. This modest rise in renters coincides with an increase in average rent prices. In 2013, the average rent was $1,521, which grew to $1,767 by 2022, a 16.2% increase over nine years. The population in the zip code has also seen fluctuations, with 22,257 residents in 2013, peaking at 23,637 in 2022. The increase in both population and average rent prices suggests a growing demand for rental properties in the area.
Looking at the most recent data, the average home price in zip code 37205 reached $978,656 in 2023 and further increased to $990,181 in 2024. This represents a continued upward trend in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the low rates seen in previous years. Despite these higher interest rates, the housing market in this zip code appears to remain robust, with home prices continuing to appreciate.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 37205 will continue to rise, potentially reaching or exceeding $1.2 million by 2029. This projection is based on the consistent upward trend observed over the past decade and the area's apparent resilience to market fluctuations. Average rent prices are also expected to increase, potentially surpassing $2,000 per month within the next five years, driven by the area's desirability and the ongoing trend of population growth.
In summary, zip code 37205 demonstrates a robust and growing real estate market characterized by stable homeownership rates, rapidly appreciating home values, and steadily increasing rent prices. The area has shown resilience to rising interest rates and appears poised for continued growth in both the homeownership and rental sectors. The substantial increase in average home prices, coupled with the maintained high rate of homeownership, suggests a strong local economy and high demand for housing in this Nashville-Davidson metropolitan area.
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