Renter percentages in zip code 38138 have shown slight variations over the years, inversely mirroring the homeownership trends. The renter-occupied rate increased from 21% in 2013 to 25% in 2019, before decreasing back to 21% in 2022. Average rent prices have fluctuated during this period. In 2013, the average rent was $1,407, which peaked at $1,763 in 2016, representing a 25% increase. However, by 2022, the average rent had decreased to $1,382, slightly below the 2013 level. This trend suggests that despite the overall increase in property values, rental prices have remained relatively stable in recent years.

In 2023 and 2024, the average home prices in zip code 38138 continued their upward trajectory, reaching $440,391 in 2023 and $448,307 in 2024. This represents a modest year-over-year increase of 1.8% from 2023 to 2024. Notably, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest levels since 2007.

Looking ahead, based on historical trends and current market conditions, we can project continued growth in average home prices for zip code 38138 over the next five years. Assuming a conservative annual growth rate of 2-3%, average home prices could potentially reach $500,000-$520,000 by 2029. Rent prices, which have shown more volatility, may stabilize or see modest increases, potentially reaching an average of $1,500-$1,600 per month in the same timeframe.

In summary, zip code 38138 in Germantown, Tennessee, has demonstrated resilience in its housing market. Despite fluctuations in federal interest rates, the area has maintained high homeownership rates and experienced substantial growth in average home values. While rental rates have shown some variability, they have remained relatively stable in recent years. The continued upward trend in home prices, even in the face of rising interest rates, suggests a strong and desirable housing market in this zip code.