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Zip Code 38049: Rising Home Values and Declining Ownership in Braden, 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 38049, located in Braden, Tennessee, presents an intriguing case study of housing market dynamics in a small community. This area has experienced significant shifts in homeownership rates, average home prices, and average rent prices over the past decade. The overall trend shows a gradual decrease in homeownership, coupled with substantial increases in both average home prices and average rent prices.
The homeownership rate in zip code 38049 has shown a declining trend over the years. In 2013, the homeownership rate stood at 73%, but by 2022, it had decreased to 69%. This 4% drop coincides with a significant increase in average home prices. In 2013, the average home price was $89,977, and by 2022, it had risen dramatically to $184,782, representing a 105% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, interest rates remained relatively low, ranging from 0.11% to 0.4%. During this period, homeownership rates in zip code 38049 remained stable at around 75-76%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a slight decline in homeownership rates, dropping to 75% by 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 38049 has shown a corresponding increase as homeownership rates declined. In 2013, 27% of residents were renters, and by 2022, this figure had risen to 31%. Interestingly, average rent prices have not followed a consistent upward trend during this period. In 2013, the average rent was $818, and it fluctuated over the years, reaching $999 in 2022. This represents a 22% increase in average rent prices over the decade, which is significant but not as dramatic as the increase in home prices. The population of the zip code has also decreased from 4,773 in 2013 to 4,472 in 2022, which may have influenced rental market dynamics.
Looking at the most recent data, average home prices in zip code 38049 continued to rise, reaching $192,349 in 2023 and $199,617 in 2024. This represents a further 8% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the rapid growth in home prices and may further impact homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 38049 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $230,000 to $250,000. Average rent prices are also expected to increase, potentially reaching $1,100 to $1,200 per month by 2029, assuming current trends continue.
In summary, zip code 38049 has experienced a notable shift in its housing market over the past decade. The declining homeownership rate, coupled with substantial increases in average home prices, suggests a changing landscape for residents. The rental market has grown, but with more moderate price increases compared to home values. The recent spike in interest rates may further influence these trends, potentially slowing home price growth but also making homeownership more challenging for some residents. These dynamics will likely continue to shape the housing market in this Tennessee community in the coming years.
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