Loading Content...
Dayton, Kentucky: Rising Home Values and Stable Ownership in a Riverside Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Dayton, Kentucky, a small city situated along the Ohio River opposite Cincinnati, Ohio, has experienced significant changes in its housing market over the past decade. From 2013 to 2022, the city witnessed a gradual increase in homeownership rates, while average home prices more than doubled during this period. Concurrently, average rent prices showed a steady upward trend.
The homeownership rate in Dayton increased from 60% in 2013 to 63% in 2022, indicating a growing preference for property ownership among residents. This trend coincided with a significant rise in average home prices, which jumped from $80,370 in 2013 to $182,784 in 2022, representing a remarkable 127% increase. The most substantial year-over-year growth occurred between 2019 and 2020, with average home prices surging from $116,101 to $140,150, a 20.7% increase in just one year.
Federal interest rates played a crucial role in shaping homeownership trends in Dayton. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the initial increase in homeownership from 60% to 62%. As interest rates began to rise more significantly from 2017 to 2019, reaching 2.16% in 2019, the homeownership rate experienced a slight dip to 59% in 2018 before rebounding. The sharp drop in interest rates to 0.38% in 2020 and 0.08% in 2021 coincided with a renewed increase in homeownership, reaching 62% by 2021.
Renter percentages in Dayton fluctuated inversely to homeownership rates, declining from 40% in 2013 to 36% in 2022. Despite this decrease, average rent prices showed a consistent upward trend, rising from $803 in 2013 to $926 in 2022, a 15.3% increase. This trend suggests that while fewer residents were renting, those who did were facing higher rental costs. The city's population remained relatively stable during this period, increasing slightly from 5,433 in 2013 to 5,556 in 2022, which may have contributed to the sustained demand for rental properties despite the declining renter percentage.
In 2023 and 2024, Dayton's housing market continued to show growth, albeit at a slower pace. The average home price reached $185,281 in 2023 and further increased to $190,295 in 2024, representing a 1.4% and 2.7% year-over-year growth, respectively. This moderation in price growth coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially dampening demand for home purchases.
Looking ahead, the 5-year forecast for Dayton's housing market suggests continued growth, albeit at a more moderate pace. Average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $220,000 by 2029. Average rent prices are expected to follow a similar trajectory, with annual increases of 2-3%, potentially reaching $1,050 by 2029. These projections assume relatively stable economic conditions and gradual adjustments in interest rates.
In summary, Dayton, Kentucky, has experienced a notable shift towards homeownership over the past decade, accompanied by substantial increases in both average home prices and rent costs. The interplay between federal interest rates, housing affordability, and local economic factors has shaped these trends. As the city moves forward, it is likely to see continued growth in its housing market, albeit at a more measured pace, reflecting broader economic conditions and local demand dynamics.
