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Indianola Terrace: Home Values and Ownership in a University-Adjacent Neighborhood
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
Indianola Terrace, a neighborhood in Columbus, Ohio, situated near The Ohio State University, has experienced notable changes in homeownership rates and housing prices over the last decade. This area is characterized by its predominantly rental-oriented market, with average home prices showing an overall upward trend and rent prices steadily increasing. Homeownership rates in Indianola Terrace have fluctuated between 5% and 11% from 2013 to 2022. Interestingly, there appears to be no direct correlation between ownership percentages and average home prices. For example, in 2014, when homeownership was at 11%, the average home price was $212,757. In 2020, with the same ownership percentage, the average home price had risen to $338,733. This suggests that other factors, such as local market conditions and broader economic trends, may have a more significant impact on home prices in this neighborhood than ownership rates.
Federal interest rates have shown some influence on homeownership rates in Indianola Terrace, although the relationship is not always straightforward. For instance, when interest rates were at historic lows of 0.08% in 2021, homeownership stood at 10%. However, in 2022, despite an increase in interest rates to 1.68%, homeownership only decreased slightly to 9%. This indicates that while interest rates play a role, local factors specific to this university-adjacent neighborhood may have a more substantial impact on homeownership decisions.
Renter percentages in Indianola Terrace have remained consistently high, ranging from 89% to 95% between 2013 and 2022. Average rent prices have shown a steady increase over this period. In 2013, the average rent was $761, which rose to $1,143 by 2022, representing a 50% increase over nine years. This upward trend in rent prices aligns with the area's high demand for rental properties, likely driven by its proximity to the university and the transient nature of the student population.
In 2023, the average home price in Indianola Terrace reached $426,643, showing a slight increase from the previous year. However, in 2024, there was a significant drop to $369,001, marking a 13.5% decrease. This decline coincides with a sharp increase in federal interest rates, which rose to 5.33% in 2024, potentially affecting housing affordability and demand in the area.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in Indianola Terrace may stabilize or experience modest growth over the next five years. The recent price correction could make homeownership more accessible, potentially leading to a slight increase in ownership rates. Average rent prices are expected to continue their upward trajectory, albeit at a potentially slower pace, as the area maintains its appeal to renters, particularly students and young professionals.
In summary, Indianola Terrace has maintained a predominantly renter-occupied status over the past decade, with homeownership rates fluctuating between 5% and 11%. Average home prices have shown significant growth from 2010 to 2023, followed by a notable decrease in 2024. Rent prices have consistently increased, reflecting the strong rental demand in this university-adjacent neighborhood. The interplay between federal interest rates, local market conditions, and the area's unique demographic composition continues to shape the housing landscape in Indianola Terrace.
