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Home Values and Ownership in Chillicothe: Ohio's Historic Capital Sees Steady Growth
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
Chillicothe, Ohio, a city rich in history as the first and third capital of Ohio, has experienced notable shifts in its housing landscape over the past decade. Located in Ross County with zip code 45601, this city of approximately 10.67 square miles has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Chillicothe has remained relatively stable, hovering around 57% from 2013 to 2022. However, this stability masks an underlying trend of slight decline followed by recovery. In 2013, the homeownership rate stood at 57%, dipping to 55% in 2017 and 2018, before rebounding to 57% by 2022. This trend coincides with changes in average home prices, which have shown a more pronounced upward trajectory. Average home prices in Chillicothe increased from $107,952 in 2013 to $176,143 in 2022, representing a substantial 63% increase over this period.
The relationship between federal interest rates and homeownership rates in Chillicothe follows a generally inverse pattern. As interest rates remained historically low between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates held steady around 56-57%. The slight dip in homeownership to 55% in 2017 and 2018 coincided with rising interest rates, which reached 1.83% by 2018. However, the subsequent recovery in homeownership rates occurred despite further interest rate increases, suggesting other local factors may have influenced this trend.
Renter percentages in Chillicothe have mirrored the homeownership trends, with the proportion of renters increasing from 43% in 2013 to 45% in 2017-2018, before settling back to 42% in 2022. Average rent prices have shown a general upward trend, rising from $691 in 2013 to $738 in 2022, an increase of about 6.8%. This increase in rent prices, while significant, has been less dramatic than the rise in average home prices over the same period. The city's population remained relatively stable during this time, fluctuating between about 26,000 and 27,000 residents, which may have contributed to the moderate growth in rental prices.
In 2023 and 2024, Chillicothe's housing market continued its upward trajectory. Average home prices reached $182,757 in 2023 and further increased to $192,680 in 2024, representing a 9.4% rise over these two years. This growth occurred despite significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local demand or other favorable market conditions in Chillicothe.
Looking ahead, predictive models suggest that Chillicothe's housing market will likely continue its growth trend, albeit potentially at a more moderate pace. Over the next five years, average home prices are projected to increase by approximately 20-25%, potentially reaching around $230,000-$240,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially increasing by 10-15% over the same period, which could bring average rents to approximately $810-$850 per month.
In summary, Chillicothe's housing market has demonstrated resilience and growth over the past decade, with significant increases in average home prices outpacing more moderate growth in rental costs. The stability in homeownership rates, despite fluctuations in interest rates and housing prices, suggests a balanced and adaptable local market. As the city continues to evolve, these trends indicate a potentially strong and competitive housing market in the coming years, with implications for both homeowners and renters in this historic Ohio city.
