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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hamilton, located in Ohio, is a moderately sized urban area with a population of 78,496 as of 2022. The city has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions. This analysis will explore the relationship between homeownership, average home prices, and average rent prices in Hamilton.
The homeownership rate in Hamilton has shown a slight decline over the years, moving from 63% in 2015 to 61% in 2022. During this same period, average home prices have seen a significant increase. In 2015, the average home price was $145,867, which rose steadily to reach $257,091 by 2022. This represents a substantial 76% increase in average home prices over seven years. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Hamilton. From 2015 to 2019, interest rates gradually increased from 0.13% to 2.16%, coinciding with a period of declining homeownership rates from 63% to 59%. However, as interest rates dropped sharply to 0.38% in 2020 and remained low in 2021, homeownership rates saw a slight recovery, reaching 61% by 2022. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in Hamilton have shown a corresponding increase as homeownership rates declined. The percentage of renters rose from 36% in 2015 to 39% in 2022. During this period, average rent prices also experienced an upward trend. In 2015, the average rent was $646, which increased to $769 by 2022, representing a 19% rise over seven years. The growth in both renter percentages and average rent prices suggests increasing demand for rental properties, potentially driven by those priced out of the homeownership market.
In 2023 and 2024, Hamilton continued to see growth in average home prices. The average home price reached $268,016 in 2023 and further increased to $279,181 in 2024. This represents a 4.2% year-over-year increase from 2022 to 2023 and a 4.2% increase from 2023 to 2024. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the city.
Looking ahead, predictive models suggest that average home prices in Hamilton may continue to rise over the next five years, albeit at a potentially slower rate than seen in recent years. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and overall market conditions. These projections are based on historical trends and current market dynamics.
In summary, Hamilton has experienced a gradual shift towards renting, with homeownership rates declining slightly as average home prices have risen substantially. The interplay between federal interest rates, housing affordability, and rental demand has shaped these trends. As the city moves forward, the housing market is likely to continue evolving, with both homeownership and rental sectors facing ongoing changes in response to economic factors and local market conditions.