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Akron's Housing Market: Rising Home Values and Stable Ownership in the Rubber Capital
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
Akron, Ohio, known as the "Rubber Capital of the World" due to its historic ties to the tire industry, has experienced notable shifts in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices in Akron from 2013 to 2022.
The homeownership rate in Akron has remained relatively stable, fluctuating between 50% and 52% from 2013 to 2022. Meanwhile, average home prices have shown a significant upward trend, particularly in recent years. In 2013, the average home price in Akron was $59,948. By 2022, it had nearly doubled to $117,525, representing a 96% increase over this period.
Examining the relationship between federal interest rates and homeownership rates in Akron reveals some interesting patterns. From 2013 to 2016, when interest rates were extremely low (between 0.09% and 0.4%), homeownership rates remained steady at 50%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership, reaching 52% in 2019. This suggests that other factors, such as local economic conditions or housing supply, may have played a more significant role in homeownership decisions than interest rates alone.
Renter percentages in Akron have mirrored homeownership rates, ranging from 48% to 50% between 2013 and 2022. Average rent prices have shown a steady increase over this period. In 2013, the average rent was $677 per month. By 2022, it had risen to $880, marking a 30% increase. This growth in rent prices, while significant, has been less dramatic than the surge in home prices. The city's population declined slightly from 198,095 in 2013 to 188,498 in 2022, which may have moderated rent increases to some extent.
Looking at the most recent data, average home prices in Akron continued to rise, reaching $122,427 in 2023 and $130,621 in 2024. This represents a 4.2% increase from 2022 to 2023 and a 6.7% increase from 2023 to 2024. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, marking a significant increase from the low rates of the previous decade.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Akron to continue their upward trajectory, potentially reaching around $160,000 by 2029. Average rent prices are also likely to increase, possibly approaching $1,000 per month in the same timeframe. These projections assume a continuation of current economic conditions and housing market trends.
In summary, Akron's housing market has shown resilience and growth over the past decade. The stability in homeownership rates, coupled with significant increases in both home prices and rents, suggests a robust demand for housing in the city. The dramatic rise in home values, outpacing rent increases, may present both opportunities and challenges for potential homebuyers and investors in the coming years.
