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Zip Code 37215: Home Values Soar in Forest Hills, Tennessee Suburb
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 37215, located in Forest Hills, Tennessee, is an area that has experienced significant changes in its housing market over the past decade. This suburban enclave has seen fluctuations in homeownership rates and substantial increases in both average home prices and average rent prices.
The homeownership rate in zip code 37215 has remained relatively stable, with slight fluctuations over the years. In 2013, the homeownership rate was 74%, and it reached its peak at 79% in 2017. By 2022, it had settled at 75%. Concurrently, average home prices have shown a remarkable upward trend. In 2013, the average home price was $504,545, and it steadily increased to $1,131,953 by 2022, representing a substantial 124% increase over this period. This trend suggests that while homeownership rates remained relatively consistent, the value of properties in the area appreciated significantly.
Federal interest rates have played a role in shaping homeownership trends in zip code 37215. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates increased from 74% to 76%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise more significantly from 2017 onwards, homeownership rates in the area remained relatively stable, suggesting that other factors, such as the strong local economy or desirability of the area, may have counterbalanced the impact of rising interest rates.
Renter percentages in zip code 37215 have shown a slight decrease over time, from 26% in 2013 to 25% in 2022. Despite this minor decline in the proportion of renters, average rent prices have increased substantially. In 2013, the average rent was $1,416, which rose to $1,938 by 2022, marking a 37% increase. This trend indicates that while the proportion of renters decreased slightly, those who continued to rent faced significantly higher costs. The population growth in the area, from 22,361 in 2013 to 24,398 in 2022, may have contributed to the upward pressure on rent prices due to increased demand for housing.
Looking at the most recent data, the average home price in zip code 37215 slightly decreased from $1,131,953 in 2022 to $1,125,837 in 2023, representing a minor 0.5% decline. However, in 2024, the average home price has rebounded to $1,138,375, showing a 1.1% increase from 2023. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying activity in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 37215 will continue to rise, albeit at a more moderate pace compared to the rapid increases seen in the past decade. We project an average annual growth rate of 3-5% for home prices over the next five years. For rent prices, we expect a continued upward trend, with an estimated annual increase of 2-4%, reflecting ongoing demand for rental properties in the area.
In summary, zip code 37215 has demonstrated robust growth in both average home prices and average rent prices over the past decade, with homeownership rates remaining relatively stable. The area has shown resilience in maintaining high homeownership levels despite rising property values and fluctuating interest rates. The recent slight dip and subsequent rebound in average home prices, coupled with rising interest rates, suggest a potentially more complex housing market in the coming years. However, the overall trend points towards continued appreciation in both home values and rent prices, albeit at a more moderate pace.
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