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Average Home Values and Ownership in Zip Code 44047: Jefferson's Changing Real Estate Landscape
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 44047, located in Jefferson, Ohio, presents an interesting case study of housing market dynamics. This area has experienced notable shifts in homeownership rates and property values over the past decade. The overall trend shows a slight decline in homeownership, coupled with significant increases in average home prices and average rent costs.
The homeownership rate in zip code 44047 has shown a gradual decline from 2013 to 2022. In 2013, 81% of residents were homeowners, but by 2022, this figure had decreased to 75%. Interestingly, this decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $119,262, and by 2022, it had risen to $189,661, representing a 59% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 78-79%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, we observed a corresponding decrease in homeownership rates to 75%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 44047 has shown a corresponding increase as homeownership declined. In 2013, 19% of residents were renters, and by 2022, this had increased to 25%. Average rent prices have also seen an upward trend, rising from $836 in 2013 to $854 in 2022, an increase of about 2.2%. However, it's worth noting that rent prices fluctuated during this period, reaching a low of $722 in 2016 before climbing again. The population of the area has remained relatively stable, decreasing slightly from 9,152 in 2013 to 8,859 in 2022, which suggests that changes in rental demand are more likely driven by shifts from homeownership to renting rather than significant population changes.
Looking at the most recent data, average home prices in zip code 44047 continued to rise, reaching $197,363 in 2023 and $204,744 in 2024. This represents a further 8% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may continue to impact homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 44047 will continue to rise, potentially reaching around $230,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $950 per month within the same timeframe. These projections are based on the consistent upward trends observed in both metrics over the past decade.
In summary, zip code 44047 has experienced a gradual shift towards renting, with homeownership rates decreasing from 81% to 75% between 2013 and 2022. This trend has occurred alongside significant increases in average home prices, which rose by 59% during the same period. The relationship between federal interest rates and homeownership rates is evident, with higher rates correlating with lower homeownership. As home prices and interest rates continue to rise, this area may see further changes in its housing market dynamics, potentially continuing the trend towards increased renting and higher housing costs.
