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Fairfield, Ohio: Rising Home Values and Stable Ownership in a Growing Suburban 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
Fairfield, Ohio, is a vibrant city located in Butler County, known for its blend of suburban comfort and urban amenities. Over the past decade, this city has experienced notable shifts in its housing market, with changing dynamics between homeownership and rental trends. The city has seen a general trend of increasing average home prices, while homeownership rates have remained relatively stable with slight fluctuations.
The homeownership rate in Fairfield has shown resilience, maintaining a level between 64% and 67% from 2013 to 2022. This stability is impressive considering the significant increase in average home prices during the same period. In 2013, the average home price was $127,175, which steadily rose to $242,012 by 2022, representing a substantial 90.3% increase over nine years. Despite this sharp rise in housing costs, the homeownership rate only saw minor fluctuations, demonstrating the city's strong appeal to homeowners.
Federal interest rates have played a crucial role in shaping homeownership trends in Fairfield. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%. This coincided with a slight decrease in homeownership from 67% in 2013 to 64% in 2016. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, the homeownership rate stabilized and even showed a slight increase to 66% by 2022. This trend suggests that local factors in Fairfield may have counterbalanced the potential negative impact of rising interest rates on homeownership.
Rental trends in Fairfield have shown an interesting pattern in relation to average rent prices. The percentage of renters increased from 33% in 2013 to 36% in 2016, coinciding with a period of fluctuating but generally increasing average rent prices. The average rent rose from $937 in 2013 to $983 in 2016. However, by 2022, the rental percentage decreased slightly to 34%, while the average rent continued to climb, reaching $1,021. This suggests that despite rising rent prices, Fairfield has maintained a balance between homeownership and renting, possibly due to factors such as job market stability or the city's overall attractiveness.
Looking at the most recent data, 2023 saw a continued rise in average home prices in Fairfield, reaching $254,133. This upward trend persisted into 2024, with prices hitting $262,473. Interestingly, this occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These high interest rates typically make mortgages more expensive, yet Fairfield's housing market has shown resilience in maintaining price growth.
Applying predictive models to forecast the next five years, we anticipate that average home prices in Fairfield will continue to rise, albeit at a potentially slower rate due to the high interest rate environment. We project that by 2029, average home prices could reach approximately $300,000 to $320,000, assuming a moderation in the growth rate. For rent prices, the trend suggests a continued increase, potentially reaching an average of $1,200 to $1,300 per month by 2029, factoring in historical growth patterns and economic indicators.
In summary, Fairfield, Ohio has demonstrated a robust and dynamic housing market over the past decade. The city has maintained a stable homeownership rate despite significant increases in home prices, suggesting strong local economic factors and community appeal. The rental market has shown flexibility, adapting to changing economic conditions while maintaining a significant portion of the housing mix. As Fairfield moves forward, it appears well-positioned to continue balancing homeownership and rental options, supporting a diverse and thriving community.
