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Average Home Values and Ownership in Zip Code 44641: A Decade of Resilience Amidst Market 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
Zip code 44641, located in Louisville, Ohio, presents an intriguing landscape of homeownership and rental dynamics over the past decade. This area has maintained a relatively stable homeownership rate, with a slight downward trend, while experiencing significant growth in average home prices and fluctuating average rent prices.
The homeownership rate in zip code 44641 has seen a gradual decline from 79% in 2013 to 73% in 2022. Despite this decrease, the average home prices have shown a consistent upward trend. In 2013, the average home price was $125,423, which steadily increased to $206,051 by 2022, representing a substantial 64.3% growth over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which coincided with a relatively stable homeownership rate around 75-77%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a slight decline in homeownership, settling at 75% by 2019. The dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not immediately reverse this trend, possibly due to economic uncertainties during the pandemic.
Renter percentages in zip code 44641 have shown a corresponding increase from 21% in 2013 to 27% in 2022. Interestingly, average rent prices have not followed a consistent upward trajectory like home prices. The average rent was $734 in 2013, peaked at $787 in 2015, and then fluctuated, reaching $729 in 2022. This volatility in rent prices, coupled with the increasing renter population, suggests a complex rental market possibly influenced by factors such as local economic conditions and housing supply.
In 2023 and 2024, the housing market in zip code 44641 continued its upward trajectory. The average home price reached $215,127 in 2023 and further increased to $224,961 in 2024, representing a 4.4% and 4.6% year-over-year growth, respectively. This growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in zip code 44641 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We can expect average home prices to potentially reach around $250,000 by 2029. Average rent prices, which have shown more volatility, are predicted to stabilize and potentially increase moderately, possibly reaching $850-$900 by 2029, assuming continued population growth and demand for rental properties.
In summary, zip code 44641 has experienced a gradual shift towards a higher percentage of renters, coupled with substantial growth in average home prices. The interplay between federal interest rates, homeownership rates, and property values highlights the complex dynamics of the local housing market. As the area moves forward, balancing affordability with property value appreciation will likely be a key challenge for maintaining a diverse and stable housing environment.
