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Average Home Values and Ownership in Zip Code 45403: Dayton's Shifting Housing 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 45403, an urban area in Dayton, Ohio, spanning 3.43 square miles, has undergone significant changes in homeownership rates and property values over the past decade. These shifts reflect broader economic trends and local market dynamics.
The homeownership rate in zip code 45403 has experienced a notable decline from 2013 to 2022. In 2013, 46% of housing units were owner-occupied. This percentage decreased to 35% by 2020, before slightly rebounding to 39% in 2022. Conversely, the average home prices in the area have seen a substantial increase. In 2013, the average home price was $24,571, which rose dramatically to $85,713 by 2022, representing a 249% increase over this period.
The trend in homeownership rates appears to have an inverse relationship with federal interest rates. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 45-46%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, homeownership rates started to decline more rapidly, dropping to 39% by 2018.
Renter-occupied housing units in zip code 45403 have shown an upward trend, increasing from 54% in 2013 to 61% in 2022. This rise in renters coincides with an overall increase in average rent prices. The average monthly rent rose from $755 in 2013 to $723 in 2022, peaking at $793 in 2021. The area's population decreased from 15,363 in 2013 to 13,047 in 2022, which may have influenced the rental market dynamics.
The most recent data shows the average home price in zip code 45403 reached $87,585 in 2023 and further increased to $94,463 in 2024. This continued upward trend in home prices occurs alongside a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying affordability and could potentially influence future homeownership rates in the area.
Predictive models forecast that average home prices in zip code 45403 will continue to rise, potentially reaching around $120,000 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 $850 per month by 2029, assuming the area's population stabilizes and demand for rental properties remains strong.
In summary, zip code 45403 has experienced a significant shift from homeownership to renting over the past decade, with a marked increase in average home prices despite declining homeownership rates. The rental market has expanded, with slight increases in average rent prices. Recent data shows continued growth in home values, even as interest rates have risen substantially. These trends suggest a dynamic and evolving housing market in this Dayton, Ohio neighborhood, with potential for further price appreciation in both the ownership and rental sectors over the next five years.
