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Average Home Values and Ownership in Zip Code 45856: Leipsic'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 45856, which encompasses Leipsic in Ohio, presents an interesting case study of homeownership and rental trends in a small Midwestern community. Over the past decade, this area has experienced fluctuations in homeownership rates, while average home prices have shown a consistent upward trajectory. The average rent prices have also seen an overall increase, albeit with some variability.
The homeownership rate in zip code 45856 has remained relatively stable, with slight fluctuations over the years. In 2013, the homeownership rate stood at 81%. It dipped slightly to 76% in 2017 before rebounding to 83% in 2022. This trend coincides with a steady increase in average home prices. In 2013, the average home price was $112,994, which rose to $184,274 by 2022, representing a significant 63% increase over nine years. This upward trend in home prices, despite maintaining high homeownership rates, suggests a strong local housing market and continued demand for homeownership in the area.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained high, between 79% and 81%. As interest rates began to rise from 2017 onwards, there was a slight dip in homeownership rates, reaching 76% in 2017 when the federal interest rate hit 1%. However, the community showed resilience, with homeownership rates bouncing back to 83% by 2022, even as interest rates climbed to 1.68%.
Renter percentages in zip code 45856 have shown an inverse relationship to homeownership rates, naturally. The renter-occupied housing units increased from 19% in 2013 to a peak of 24% in 2017, before declining to 17% in 2022. Interestingly, average rent prices have generally increased during this period, rising from $655 in 2013 to $766 in 2022, a 17% increase. However, there was a notable spike in 2021 when the average rent reached $914, before returning to more moderate levels in 2022. This spike could be attributed to various factors, including temporary market disruptions or changes in local economic conditions.
Looking at the most recent data, the average home price in zip code 45856 continued its upward trajectory, reaching $188,596 in 2023 and $196,283 in 2024. This represents a 6.5% increase from 2022 to 2024. Concurrently, federal interest rates have seen a significant rise, jumping from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, the continued rise in home prices suggests ongoing demand in the local housing market.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in zip code 45856 will likely continue to rise, albeit potentially at a more moderate pace due to the higher interest rate environment. Average rent prices may also see continued growth, especially if higher mortgage rates discourage some potential buyers from entering the market, increasing demand for rentals. However, the strong homeownership culture in the area might mitigate dramatic shifts in the rental market.
In summary, zip code 45856 demonstrates a robust and resilient housing market characterized by high homeownership rates and steadily increasing average home prices. Despite fluctuations in federal interest rates and brief periods of increased renting, the community has maintained a strong preference for homeownership. The consistent rise in both home prices and rent suggests a healthy demand for housing in the area, likely supported by local economic factors and community appeal.
