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Zip Code 37934: Farragut's Thriving Real Estate Market with Soaring Home Values and Strong Ownership Rates
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 37934, located in Farragut, Tennessee, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has maintained a high rate of homeownership while seeing substantial growth in both population and property values.
The homeownership rate in zip code 37934 has remained relatively stable, with a slight decrease from 87% in 2013 to 86% in 2022. During this period, average home prices have shown a remarkable upward trend. In 2013, the average home price was $282,669, which steadily increased to $534,019 by 2022, representing an impressive 89% growth over nine years. This substantial rise in home values did not significantly impact homeownership rates, suggesting a strong local economy and continued desire for homeownership in the area.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (0.11% to 0.4%), homeownership remained stable at 86-87%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight fluctuation in homeownership, but it remained high at 85-88%. The dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a stable homeownership rate of 86%, possibly encouraging some renters to transition to homeownership.
Renter percentages in zip code 37934 have shown minor fluctuations, increasing slightly from 12% in 2013 to 13% in 2022. Average rent prices have also experienced changes, rising from $1,366 in 2013 to a peak of $1,727 in 2016, before settling at $1,461 in 2022. The population growth from 24,306 in 2013 to 26,875 in 2022 may have contributed to the slight increase in renters and the overall rise in average rent prices, despite some year-to-year variations.
In 2023 and 2024, average home prices in zip code 37934 continued their upward trajectory, reaching $586,013 in 2023 and $623,710 in 2024. This represents a 16.8% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics.
Looking ahead, predictive models suggest that average home prices in zip code 37934 will continue to rise over the next five years, potentially reaching around $750,000 by 2029. Average rent prices are also expected to increase, albeit at a more moderate pace, potentially reaching approximately $1,700 by 2029. These projections are based on historical trends and current market conditions.
In summary, zip code 37934 has demonstrated resilience in maintaining high homeownership rates despite significant increases in average home prices. The area has experienced steady population growth, rising property values, and relatively stable rental markets. The recent spike in interest rates, combined with continued home price appreciation, may present new challenges for potential homebuyers in the coming years. However, the strong local market fundamentals suggest that this zip code will likely remain an attractive area for both homeowners and investors.
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