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Average Home Values and Ownership in Zip Code 43240: A Shift from Owner-Occupied to Renter-Dominated
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 43240, located in Columbus, Ohio, has undergone significant demographic and real estate changes over the past decade. This area has experienced a notable shift in homeownership rates and substantial increases in both average home prices and average rent prices. The homeownership rate in zip code 43240 has shown a consistent downward trend from 2013 to 2022. In 2013, 58% of residents were homeowners, but by 2022, this figure had dropped to just 27%. This dramatic decrease in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $156,802, and by 2022, it had risen to $290,257, representing an 85% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.40%), homeownership rates still declined from 58% to 43%. This suggests that other factors, such as rising home prices, may have had a stronger influence on homeownership than low interest rates in this area.
As homeownership rates declined, the percentage of renters increased substantially, from 42% in 2013 to 73% in 2022. Interestingly, average rent prices did not increase as dramatically as home prices during this period. In 2013, the average rent was $1,258, and by 2022 it had decreased slightly to $1,234. This relative stability in rent prices, combined with rising home prices, likely contributed to the shift towards renting in this zip code. The population also grew significantly during this time, from 4,171 in 2013 to 8,163 in 2022, which may have increased demand for rental properties.
In 2023 and 2024, the average home prices in zip code 43240 continued to rise, reaching $305,167 in 2023 and $318,525 in 2024. This represents a 5.1% increase from 2022 to 2023 and a further 4.4% increase from 2023 to 2024. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007.
Looking ahead, based on the trends observed, we can predict that average home prices in zip code 43240 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $350,000 to $375,000 by 2029. Average rent prices, which have been relatively stable, may start to increase more rapidly to catch up with rising property values, potentially reaching $1,400 to $1,500 per month by 2029.
In summary, zip code 43240 has experienced a significant shift from homeownership to renting, driven by rapidly increasing home prices and a growing population. Despite rising interest rates, home prices have continued to climb, while rent prices have remained relatively stable. These trends suggest a continuing preference for renting in this area, with potential for further increases in both home prices and rent in the coming years.
