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Zip Code 38135: Rising Home Values and Shifting Ownership in Bartlett, 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 38135, located in Bartlett, Tennessee, has experienced significant changes in its housing market over the past decade. This suburban area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 38135 has shown a gradual decline from 2013 to 2022. In 2013, the area boasted an 85% homeownership rate, which decreased to 80% by 2022. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $142,112, which more than doubled to $300,599 by 2022. This significant price appreciation may have contributed to the slight decrease in homeownership, as higher prices potentially made purchasing a home less affordable for some residents.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, interest rates remained exceptionally low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable at around 82%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a corresponding slight decrease in homeownership rates to 80%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 38135 has seen a modest increase, rising from 14% in 2013 to 20% in 2022. This growth in the renter population coincides with an increase in average rent prices. In 2013, the average rent was $1,374, which rose to $1,390 by 2022, representing a 1.2% increase over nine years. It's worth noting that the population of the zip code also grew during this period, from 28,462 in 2013 to 30,563 in 2022, potentially contributing to increased demand for rental properties.
Looking at the most recent data, the average home price in zip code 38135 continued to rise in 2023, reaching $306,890. In 2024, it further increased to $309,135, indicating a steady upward trend in property values. Interestingly, federal interest rates also saw a significant jump, rising from 5.02% in 2023 to 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 38135 will continue to increase, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $350,000 to $375,000. For average rent prices, we expect a moderate upward trend, potentially reaching $1,500 to $1,600 per month by 2029, assuming continued population growth and demand for rental properties in the area.
In summary, zip code 38135 has experienced a gradual shift towards a slightly higher proportion of renters, coupled with significant appreciation in home values over the past decade. The interplay between federal interest rates, housing affordability, and population growth has shaped these trends. As the area continues to evolve, it will be crucial to monitor how these factors influence the local housing market in the coming years.
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