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Linden Heights, Dayton: Rising Home Values and Ownership Amidst Interest Rate Fluctuations
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
Linden Heights, a neighborhood in Dayton, Ohio, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a notable increase in homeownership, coupled with substantial growth in average home prices and fluctuating average rent prices. The trend in homeownership in Linden Heights has been generally upward since 2013. In 2013, the homeownership rate stood at 58%, and by 2022, it had risen dramatically to 71%. This 13 percentage point increase represents a significant shift towards owner-occupied housing in the neighborhood. Concurrently, average home prices have shown a consistent upward trajectory. In 2013, the average home price was $47,804, which steadily increased to $117,841 by 2022, representing a remarkable 146.5% increase over this period.
The relationship between federal interest rates and homeownership rates in Linden Heights appears to follow established trends. As interest rates remained relatively low between 2013 and 2021, ranging from 0.08% to 2.16%, homeownership rates generally increased. This aligns with the principle that lower interest rates tend to encourage homeownership by making mortgages more affordable. The significant jump in homeownership from 64% in 2019 to 71% in 2022 coincided with historically low interest rates of 0.38% in 2020 and 0.08% in 2021.
Renter percentages in Linden Heights have inversely mirrored the homeownership trend, decreasing from 42% in 2013 to 29% in 2022. Interestingly, average rent prices have not consistently followed this downward trend. Average rent peaked at $961 in 2014 when the renter percentage was 39%, then fluctuated before declining to $821 in 2022. This suggests that factors beyond simple supply and demand, such as local economic conditions or housing quality improvements, may be influencing rent prices in the area.
In 2023 and 2024, Linden Heights continued to see growth in average home prices, reaching $125,209 in 2023 and $132,802 in 2024. This represents a 6.3% increase from 2022 to 2023 and a further 6.1% increase from 2023 to 2024. These price increases occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests strong demand for housing in the neighborhood, potentially driven by factors such as local economic growth or neighborhood improvements.
Looking ahead, predictive models suggest that the upward trend in average home prices is likely to continue over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices may stabilize or see modest increases as the rental market adjusts to the reduced proportion of renters in the neighborhood.
In summary, Linden Heights has undergone a significant transformation in its housing market over the past decade. The neighborhood has seen a substantial increase in homeownership rates, accompanied by strong growth in average home prices. While the rental market has shrunk in terms of percentage, rent prices have shown resilience. The continued rise in home prices, even in the face of higher interest rates, indicates robust demand for housing in this Dayton neighborhood.
