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Average Home Values and Ownership in Zip Code 44889: Birmingham's Resilient Housing Market
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 44889, located in Birmingham, Ohio, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, encompassing 82.39 square miles, has seen fluctuations in its population and housing market dynamics, reflecting broader economic trends and local developments. The homeownership rate in zip code 44889 has remained relatively stable, with a slight increase from 79% in 2017 to 84% in 2022. This trend coincides with a significant rise in average home prices, which grew from $161,097 in 2017 to $230,895 in 2022, representing a 43.3% increase over five years. This substantial appreciation in home values suggests a strong demand for housing in the area, potentially driven by its desirable location or local economic factors.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite the federal interest rate increasing from 1% in 2017 to 1.68% in 2022, the homeownership rate in zip code 44889 actually rose from 79% to 84% during this period. This trend suggests that local factors may have had a stronger influence on homeownership than national interest rates in this particular area.
Renter percentages in zip code 44889 have shown a slight decrease, moving from 21% in 2017 to 16% in 2022. Interestingly, average rent prices have exhibited volatility during this period. In 2017, the average rent was $816, which decreased to $744 in 2018 before rising significantly to $972 in 2022. This 19.1% increase in average rent from 2017 to 2022 occurred despite a decreasing percentage of renters, possibly indicating a tightening rental market or an increase in higher-quality rental properties.
Looking at the most recent data, average home prices in zip code 44889 continued their upward trajectory, reaching $238,324 in 2023 and further increasing to $248,205 in 2024. This represents a 7.5% increase from 2022 to 2024. Simultaneously, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 44889 will continue to rise, potentially reaching around $290,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, the forecast suggests a more moderate increase, potentially reaching approximately $1,100 by 2029, assuming the current economic conditions and local market factors remain relatively stable.
In summary, zip code 44889 has demonstrated a robust housing market with increasing homeownership rates and steadily rising home values. The area has shown resilience in maintaining high homeownership levels despite fluctuating interest rates. The rental market, while smaller, has seen significant price increases, indicating a potential shift towards higher-value rental properties. These trends suggest a generally positive outlook for the housing market in this zip code, with continued growth expected in both home values and rental prices over the next five years.
