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Zip Code 37665: Rising Home Values and Shifting Ownership Trends in Kingsport, Tennessee
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 37665, located in Kingsport, Tennessee, presents an intriguing landscape of homeownership and rental trends. This area has experienced significant fluctuations in both ownership percentages and housing prices over the past decade. The overall trend shows a slight decrease in homeownership, coupled with a substantial increase in average home prices and moderate changes in average rent prices.
The homeownership rate in zip code 37665 has shown a gradual decline from 62% in 2016 to 55% in 2021, before rebounding to 62% in 2022. This trend correlates inversely with the average home prices, which have seen a consistent upward trajectory. In 2013, the average home price was $68,166, steadily climbing to $131,099 by 2022, representing a remarkable 92% increase over this period. The most significant jump occurred between 2020 and 2022, with prices rising from $101,142 to $131,099, a 30% increase in just two years.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1-0.13%, which coincided with a stable homeownership rate of 60%. As interest rates began to rise from 2016 onwards, reaching 1.83% in 2018, we observed fluctuations in homeownership percentages. However, the sharp drop in interest rates to 0.08% in 2021 did not immediately translate to increased homeownership, likely due to other economic factors at play.
Renter percentages in zip code 37665 have shown an inverse relationship to homeownership rates, naturally increasing as homeownership declined. The renter population rose from 38% in 2016 to a peak of 45% in 2021, before decreasing to 38% in 2022. Average rent prices have been more volatile than home prices, fluctuating between $508 and $707 over the past decade. Notably, average rent increased from $622 in 2020 to $707 in 2021, a 14% jump, possibly reflecting increased demand for rental properties during this period.
In 2023 and 2024, we see a continuation of the upward trend in average home prices, reaching $140,742 in 2023 and $150,205 in 2024. This represents a 14.6% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, the highest levels in over a decade. These high interest rates may impact future homeownership trends in the area.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 37665 will continue to rise over the next five years, potentially reaching around $180,000 by 2029. Average rent prices are likely to follow a similar upward trajectory, possibly exceeding $800 per month within the same timeframe. However, these projections assume relatively stable economic conditions and no major market disruptions.
In summary, zip code 37665 has experienced a complex interplay between homeownership rates, average home prices, and rental trends. The area has seen a significant appreciation in property values, with some volatility in rental markets. The recent sharp increase in interest rates, coupled with rising home prices, may present challenges for potential homebuyers in the coming years, potentially influencing the balance between homeownership and renting in this Kingsport neighborhood.
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