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Average Home Values and Ownership: South Side Toledo's Transforming 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
South Side, a neighborhood in Toledo, Ohio with a rich industrial history, has experienced significant changes in homeownership rates and housing prices over the past decade. These shifts reflect broader economic trends and local developments in the area. The homeownership rate in South Side has gradually declined from 51% in 2013 to 48% in 2022. During the same period, average home prices have risen dramatically, increasing from $24,100 in 2013 to $59,619 in 2022, representing a 147% increase over nine years. This substantial rise in home prices likely contributed to the decline in homeownership, as purchasing a home became less affordable for many residents.
Federal interest rates have played a crucial role in shaping homeownership trends in South Side. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates generally remained above 45%. However, as interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), homeownership dipped to 48% in 2022, suggesting that higher borrowing costs may have deterred potential buyers.
As homeownership declined, the renter population in South Side grew. The percentage of renters increased from 49% in 2013 to 52% in 2022. Average rent prices showed a more modest increase compared to home prices, rising from $751 in 2013 to $780 in 2022, an increase of only 3.9%. This relatively stable rent market, combined with rising home prices, may have incentivized more residents to choose renting over buying. The population of South Side decreased from 20,700 in 2013 to 17,493 in 2022, which could have influenced the rental market dynamics.
In 2023 and 2024, average home prices in South Side experienced a slight dip followed by a recovery. The average home price decreased to $56,621 in 2023 but rebounded to $59,819 in 2024. This recovery occurred despite the continued rise in federal interest rates, which reached 5.33% in 2024. This resilience in home prices suggests a strong underlying demand for housing in the area, even in the face of higher borrowing costs.
Based on observed trends, projections suggest that average home prices in South Side may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices are expected to reach around $70,000-$75,000 by 2029. Rent prices, which have been more stable, are likely to see moderate increases, potentially reaching an average of $850-$900 per month in the same timeframe.
In conclusion, South Side has experienced a significant increase in average home prices over the past decade, coinciding with a gradual shift from homeownership to renting. The interplay between rising home values, relatively stable rent prices, and fluctuating interest rates has shaped the neighborhood's housing market dynamics. As we move forward, the area is likely to continue seeing growth in property values, with a potential for further shifts in the balance between homeowners and renters depending on economic conditions and housing affordability.
