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Home Values and Ownership in Zip Code 44057: Madison's Evolving Housing 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
Zip code 44057, located in Madison, Ohio, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a notable increase in homeownership, along with fluctuating average home prices and rent costs.
The trend of homeownership in zip code 44057 has been steadily increasing since 2013. In 2013, the percentage of owner-occupied homes was 74%, which gradually rose to 83% by 2022. This represents a substantial 9 percentage point increase in homeownership over a nine-year period. Concurrently, average home prices in the area have shown an overall upward trend. In 2013, the average home price was $123,531, which increased to $192,027 by 2022, marking a 55.4% increase over this period. The most significant jump occurred between 2020 and 2021, when average home prices rose from $154,709 to $175,759, a 13.6% increase in just one year.
Federal interest rates have played a role in shaping homeownership trends in zip code 44057. From 2013 to 2015, when interest rates remained below 0.15%, homeownership increased from 74% to 77%. As interest rates began to rise from 2016 onwards, reaching 2.16% in 2019, homeownership rates stabilized around 75-77%. However, when interest rates dropped sharply to 0.38% in 2020 and 0.08% in 2021, homeownership surged to 80% and 82% respectively. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
As homeownership rates increased, the percentage of renters in zip code 44057 naturally decreased. In 2013, 26% of occupants were renters, which declined to 17% by 2022. Despite this decrease in the renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $895, which increased to $970 by 2022, representing an 8.4% increase. The highest average rent was recorded in 2017 at $1,046, coinciding with a period of stable homeownership rates around 75%.
In 2023, the average home price in zip code 44057 reached $200,839, continuing the upward trend seen in previous years. This represents a 4.6% increase from 2022. Moving into 2024, the average home price has further increased to $210,862, marking a 5% rise from 2023. It's worth noting that federal interest rates have also seen significant increases, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in average home prices for zip code 44057. Applying a conservative estimate based on recent year-over-year increases, we might expect average home prices to reach approximately $240,000 to $250,000 by 2029. For rent prices, if the current trend continues, we could see average rents increase to around $1,100 to $1,200 per month in the next five years.
In summary, zip code 44057 has experienced a significant increase in homeownership rates over the past decade, rising from 74% to 83%. This trend has been accompanied by substantial growth in average home prices, particularly in recent years. Despite a decreasing renter population, average rent prices have also shown an upward trajectory. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of the local real estate market in this Ohio community.
