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Franklin, Ohio: Rising Home Values and Stable Ownership in a Small Urban Center
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
Franklin, Ohio, a charming city located in Warren County, has experienced notable shifts in its housing market over the past decade. With a population of 15,560 in 2022 and covering an area of 9.45 square miles, Franklin has maintained a relatively stable balance between homeowners and renters. The city has seen a gradual increase in average home prices, while average rent prices have fluctuated over the years.
The homeownership rate in Franklin has remained relatively steady, with a slight increase from 63% in 2013 to 65% in 2022. During this same period, average home prices have shown a consistent upward trend. In 2013, the average home price was $108,079, which rose to $216,900 by 2022, representing a significant 100.7% increase over nine years. This trend suggests that despite rising home prices, Franklin has managed to maintain a strong base of homeowners.
Federal interest rates have played a role in shaping homeownership trends in Franklin. In 2013, when interest rates were at a low 0.11%, the homeownership rate was 63%. As interest rates remained low through 2020 (0.38%), homeownership increased slightly to 64%. The continued low rates in 2021 (0.08%) corresponded with a further increase in homeownership to 65%, which held steady in 2022 despite a rise in interest rates to 1.68%. This pattern aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter occupancy in Franklin has shown a slight decrease, from 37% in 2013 to 35% in 2022. Average rent prices have fluctuated during this period, with notable increases in some years. In 2013, the average rent was $802, which rose to $1,075 by 2017, an increase of 34%. However, rent prices have shown some volatility, dropping to $1,009 in 2018 before rising again to $1,125 in 2021. The most recent data for 2022 shows a decrease to $1,009, matching the 2018 level. These fluctuations in rent prices, coupled with the slight decrease in renter occupancy, suggest a complex rental market influenced by various factors including housing availability and local economic conditions.
Looking at the most recent data, average home prices in Franklin continued their upward trajectory, reaching $230,507 in 2023 and $241,520 in 2024. This represents an increase of 6.3% from 2022 to 2023 and a further 4.8% rise from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the city.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Franklin will continue to rise, albeit potentially at a more moderate pace due to higher interest rates. Average home prices could reach approximately $280,000 by 2029. Average rent prices are expected to follow a similar upward trajectory, potentially reaching around $1,300 by 2029, assuming continued economic growth and demand for rental properties in the area.
In summary, Franklin has demonstrated resilience in its housing market, maintaining a stable homeownership rate despite rising home prices. The city has experienced significant appreciation in property values, with average home prices more than doubling from 2013 to 2024. The rental market has shown more volatility, with fluctuating average rent prices and a slight decrease in renter occupancy. As Franklin moves forward, the interplay between rising home prices, higher interest rates, and rental market dynamics will likely continue to shape the city's housing landscape.
