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Arlington Heights: Rising Home Values and Ownership Amid Interest Rate Fluctuations
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
Arlington Heights, a neighborhood in Dayton, Ohio, has experienced significant changes in its housing market over the past decade. This area has seen notable fluctuations in population and homeownership rates, with recent trends indicating an increase in both homeownership and average home prices. The homeownership rate in Arlington Heights has shown a remarkable upward trend in recent years. In 2017, the homeownership rate was only 37%, but by 2022, it had risen dramatically to 70%. This substantial increase in homeownership coincided with a significant rise in average home prices. The average home price in 2018 was $30,577, which steadily increased to $55,552 by 2022, representing an 81.7% increase over four years. The relationship between federal interest rates and homeownership rates in Arlington Heights appears to follow the general trend of lower interest rates encouraging higher homeownership. When interest rates were at historic lows of 0.08% in 2021, the neighborhood saw homeownership rates increase from 54% in 2020 to 55% in 2021. The subsequent rise to 70% homeownership in 2022 occurred despite a moderate increase in interest rates to 1.68%, suggesting other local factors may have played a significant role in this dramatic shift.
Renter percentages and average rent prices in Arlington Heights have shown an inverse relationship to homeownership trends. As homeownership increased, the percentage of renters decreased from a peak of 63% in 2017 to 29% in 2022. Interestingly, average rent prices did not follow a consistent pattern during this period. The average rent peaked at $1,117 in 2015 when renters occupied 52% of housing units. However, by 2022, despite the significant decrease in renter occupancy, the average rent had only moderately decreased to $870.
In 2023 and 2024, Arlington Heights experienced a slight dip in average home prices followed by a recovery. The average home price in 2023 was $53,399, showing a 3.9% decrease from 2022. However, in 2024, prices rebounded to $55,177, nearly reaching the 2022 levels. This occurred against a backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting housing affordability and market dynamics.
Looking ahead, predictive models suggest a continued upward trend in average home prices for Arlington Heights over the next five years. Based on the historical data and current market conditions, average home prices could potentially reach around $65,000 to $70,000 by 2029. Average rent prices are expected to stabilize or show modest increases, potentially reaching $900 to $950 per month in the same timeframe, assuming the current balance between supply and demand remains relatively stable.
In summary, Arlington Heights has undergone a significant transformation in its housing market, marked by a substantial increase in homeownership and rising average home prices. The neighborhood has demonstrated resilience in the face of fluctuating interest rates and changing demographic patterns. The recent rebound in home prices, despite higher interest rates, suggests a strong local housing market that may continue to see growth in the coming years.
