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Hillsboro, Ohio: Rising Home Values and Ownership Rates in a Shifting 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
Hillsboro, a small city in Ohio with a population of 9,937 in 2022, has experienced significant changes in its housing market over the past decade. The city has seen a notable increase in both homeownership rates and average home prices, reflecting local dynamics and broader economic factors.
Homeownership rates in Hillsboro have shown an upward trend in recent years. In 2013, 59% of housing units were owner-occupied. This figure remained relatively stable until 2020 when it began to increase more significantly. By 2022, the homeownership rate had risen to 63%, indicating a growing preference for homeownership in the city. Concurrently, average home prices in Hillsboro have seen a substantial increase. In 2013, the average home price was $94,743, and by 2022, it had climbed to $181,207, representing a 91% increase over this period.
The relationship between federal interest rates and homeownership rates in Hillsboro aligns with typical patterns. From 2013 to 2021, interest rates remained historically low, hovering below 1% for several years. This period coincided with the gradual increase in homeownership rates, particularly the jump from 58% in 2020 to 63% in 2022. The low interest rates likely made mortgages more affordable, encouraging more residents to purchase homes.
Renter occupancy in Hillsboro has shown an inverse relationship to homeownership trends. In 2013, 41% of housing units were renter-occupied. This percentage fluctuated slightly over the years, reaching a peak of 45% in 2018 before declining to 37% by 2022. Average rent prices have generally increased during this period, albeit with some fluctuations. In 2013, the average rent was $590, rising to a peak of $676 in 2017 before settling at $601 in 2022. The decrease in renter occupancy coupled with relatively stable rent prices in recent years suggests a shift towards homeownership, possibly driven by the previously mentioned low interest rates and despite rising home prices.
In 2023 and 2024, Hillsboro's housing market continued its upward trajectory. The average home price reached $187,669 in 2023 and further increased to $196,519 in 2024. This represents a 8.5% increase from 2022 to 2024. Notably, federal interest rates also saw a significant rise during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Looking ahead, based on the trends observed, we can expect average home prices in Hillsboro to continue rising, albeit potentially at a slower rate due to higher interest rates. A conservative estimate suggests average home prices could reach around $220,000 to $230,000 by 2029. Rent prices, which have been more volatile, may stabilize or see modest increases, potentially reaching an average of $650 to $700 per month in the next five years. However, these projections are subject to various economic factors and local market conditions.
In summary, Hillsboro has experienced a significant increase in homeownership rates and average home prices over the past decade. The city has seen a shift from renting to owning, likely influenced by previously low interest rates. Recent increases in both home prices and interest rates may reshape these trends in the coming years, potentially affecting affordability and homeownership rates in this Ohio city.
