Renter percentages in zip code 38016 have shown an inverse relationship to homeownership rates, as expected. The percentage of renters increased from 40% in 2013 to a peak of 47% in 2018, before declining to 41% in 2022. Average rent prices have generally trended upward, rising from $1,293 in 2013 to $1,335 in 2022, an increase of about 3.2% over nine years. It's worth noting that the population in this zip code grew from 41,328 in 2013 to 42,523 in 2022, which may have contributed to the demand for rental properties and the subsequent increase in average rent prices.

Looking at the most recent data, average home prices in zip code 38016 reached $304,658 in 2023 and slightly decreased to $303,034 in 2024. This represents a marginal decline of about 0.5% from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homebuying activity in the area.

Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 38016 may continue to experience moderate growth, albeit at a slower pace than the rapid increases seen in recent years. The current high interest rates could temper price appreciation. Average rent prices are expected to continue their gradual upward trajectory, driven by population growth and potential shifts in housing preferences.

In summary, zip code 38016 has demonstrated resilience in its housing market, with a recent uptick in homeownership rates despite rising home prices. The area has seen substantial appreciation in property values, while rent prices have increased more modestly. The interplay between interest rates, home prices, and ownership rates suggests a complex local real estate market influenced by various economic factors. As we move forward, the balance between homeownership and renting in this zip code will likely continue to evolve in response to economic conditions, housing affordability, and demographic changes.