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Zip Code 37375: Rising Home Values and Ownership in Sewanee, Tennessee's University Town
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 37375, located in Sewanee, Tennessee, has experienced significant shifts in homeownership rates and property values over the past decade. This area, known for its scenic beauty and home to the University of the South, has seen a notable increase in homeownership coupled with rising average home prices.
The ownership percentage in zip code 37375 has shown a strong upward trend, increasing from 65% in 2013 to 79% in 2022. This substantial rise in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $195,686, which steadily climbed to $407,083 by 2022, representing a remarkable 108% increase over nine years. This correlation suggests that despite rising prices, more residents have been able to enter the housing market, possibly due to factors such as increased local economic stability or changing demographics.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 37375. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the initial increase in homeownership from 65% to 70%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership continued to increase, reaching 79% by 2019. This trend suggests that other local factors may have been strong enough to offset the potential negative impact of rising interest rates on homeownership.
The renter population in zip code 37375 has experienced a corresponding decline as homeownership increased. The percentage of renters decreased from 35% in 2013 to 21% in 2022. Interestingly, despite this decline in the renter population, average rent prices have shown an overall upward trend. The average rent increased from $974 in 2013 to $1,022 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,111. This trend suggests that even with fewer renters, demand for rental properties remained strong enough to support rising prices, possibly due to factors such as the local student population or limited rental inventory.
In 2023 and 2024, the average home prices in zip code 37375 continued to rise, reaching $415,894 in 2023 and $417,712 in 2024. This represents a modest increase of 0.44% from 2023 to 2024, indicating a potential slowdown in the rapid price growth observed in previous years. Concurrently, federal interest rates have increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership trends and property values in the area.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in zip code 37375 will continue to rise over the next five years, albeit at a more moderate pace. The average home price could potentially reach around $450,000 by 2029. Average rent prices are also expected to increase, potentially reaching approximately $1,200 per month in the same timeframe. However, these projections may be influenced by various factors including economic conditions, local development, and changes in interest rates.
In summary, zip code 37375 has experienced a significant increase in homeownership rates and average home prices over the past decade. Despite rising property values and recent increases in interest rates, the area has maintained a strong trend towards homeownership. The rental market, while shrinking in terms of population percentage, has seen rising average rents, indicating sustained demand. These trends reflect a dynamic and evolving real estate market in Sewanee, Tennessee.
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