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Chapel Hill's Shifting Home Values and Ownership: A Decade of Change in Akron's Diverse Neighborhood
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
Chapel Hill, Akron: A Decade of Housing Market Transformation Chapel Hill, a neighborhood in Akron, Ohio, has undergone significant changes in its housing market over the past decade. The area has experienced a notable shift in homeownership rates, average home prices, and rental trends, reflecting broader economic and demographic changes. Declining Homeownership and Rising Home Prices From 2013 to 2022, Chapel Hill witnessed a steady decline in homeownership rates. In 2013, 45% of housing units were owner-occupied, but by 2022, this figure had dropped to 38%. Despite this decline, average home prices in the neighborhood saw remarkable growth. The average home price more than doubled from $57,043 in 2013 to $125,679 in 2022, representing a 120% increase over nine years.
Interest Rates and Homeownership Trends The relationship between federal interest rates and homeownership rates in Chapel Hill presents an interesting dynamic. Generally, lower interest rates tend to encourage homeownership. However, in Chapel Hill, despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.83%), homeownership rates continued to decline. This suggests that other factors, such as rising home prices, may have had a more significant impact on homeownership trends in the neighborhood.
Rental Market Growth As homeownership rates decreased, the percentage of renters in Chapel Hill increased from 55% in 2013 to 62% in 2022. During this period, average rent prices also rose, albeit at a slower pace compared to home prices. The average rent increased from $792 per month in 2013 to $819 in 2022, a 3.4% rise over nine years. The population of Chapel Hill fluctuated during this time, peaking at 15,446 in 2018 before settling at 14,555 in 2022. These trends indicate a steady demand for rental properties in the area.
Recent Market Developments In 2023 and 2024, Chapel Hill's housing market continued to evolve. The average home price rose to $130,233 in 2023 and further increased to $139,535 in 2024, representing a 7.1% year-over-year increase. Concurrently, federal interest rates rose significantly, from 5.02% in 2023 to 5.33% in 2024, potentially influencing homebuying decisions in the neighborhood.
Future Projections Based on historical trends and current market conditions, projections for the next five years suggest continued growth in both home prices and rent. Average home prices in Chapel Hill could potentially reach between $180,000 and $200,000 by 2029. Average rent prices, which have shown more modest growth, might increase to approximately $900 to $950 per month in the same timeframe.
Conclusion Chapel Hill has transitioned into a renter-majority community over the past decade, with homeownership rates declining despite periods of low interest rates. Average home prices have seen substantial growth, more than doubling since 2013, while rent prices have increased at a slower pace. These trends, combined with population fluctuations, indicate a dynamic and evolving housing market in Chapel Hill, characterized by a growing preference for rental properties and rapidly appreciating home values.
