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Beach City, Ohio: Shifting Home Values and Ownership in a Small Community
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
Beach City, located in Ohio, is a small community that has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, revealing the dynamic nature of the local real estate landscape. The homeownership rate in Beach City has shown a declining trend since 2013. In 2013, 86% of housing units were owner-occupied. This percentage steadily decreased to 71% by 2021, before slightly rebounding to 74% in 2022. Conversely, the average home prices in the village have been on an upward trajectory. In 2013, the average home price was $102,897, which rose consistently to reach $190,048 by 2022, representing an impressive 84.7% increase over this period.
The relationship between federal interest rates and homeownership rates in Beach City appears to follow the well-established trend of lower interest rates encouraging homeownership. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), the homeownership rate remained relatively high, above 83%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined to 74%.
Renter percentages in Beach City have inversely mirrored the homeownership trends, increasing from 14% in 2013 to 26% in 2022. The average rent prices have also shown a general upward trend, albeit with some fluctuations. In 2013, the average rent was $582, which rose to $858 by 2021, before slightly decreasing to $827 in 2022. This represents a 42% increase in average rent over the nine-year period. The population of Beach City has decreased from 1,353 in 2013 to 1,178 in 2022, which may have influenced the rental market dynamics.
In 2023, the average home price in Beach City reached $197,280, and in 2024, it further increased to $207,470. This continued upward trend in home prices coincides with higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. Despite the higher interest rates, the housing market in Beach City has remained robust, with average home prices continuing to appreciate.
Looking ahead, based on the historical trends and current market conditions, we can forecast the following 5-year trends: 1. Average home prices are likely to continue their upward trajectory, potentially reaching around $240,000 to $250,000 by 2029. 2. Average rent prices may stabilize or increase moderately, potentially reaching $900 to $950 per month by 2029.
In summary, Beach City has experienced a significant shift in its housing market over the past decade. The most notable trends include a decline in homeownership rates, a substantial increase in average home prices, and a moderate rise in average rent prices. These changes have occurred against a backdrop of fluctuating interest rates and a declining population, highlighting the complex interplay of factors influencing the local real estate market.
