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Manchester's Housing Market: Rising Prices Amidst Declining Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Manchester, Ohio, is a small community located in Adams County. With a population of 2,168 in 2022 and covering an area of 1.27 square miles, this village offers a close-knit suburban atmosphere. Over the past decade, Manchester has experienced fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Manchester has shown some variability over the years. In 2013, 62% of housing units were owner-occupied. This rate fluctuated between 57% and 63% until 2021, before dropping to 53% in 2022. Concurrently, average home prices have steadily increased. In 2013, the average home price was $71,736. By 2022, it had risen to $124,157, representing a substantial 73% increase over this period. This upward trend in home prices, despite fluctuations in homeownership rates, suggests a complex interplay of factors influencing the local housing market.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2020, interest rates remained relatively low, hovering between 0.09% and 2.16%. This period of low rates coincided with relatively stable homeownership rates in Manchester, ranging from 57% to 63%. However, the sharp increase in interest rates to 1.68% in 2022 and 5.02% in 2023 may have contributed to the drop in homeownership to 53% in 2022, as higher borrowing costs typically make home purchases less affordable.
Rental trends in Manchester have shown an inverse relationship to homeownership rates. The percentage of renter-occupied housing units increased from 37% in 2015 to 47% in 2022. During this period, average rent prices also saw an overall upward trend. In 2013, the average rent was $408. It reached a peak of $571 in 2021 before decreasing slightly to $443 in 2022. This general increase in both rental rates and the proportion of renters suggests a growing demand for rental properties in the village, possibly driven by factors such as affordability concerns in the homeownership market.
In 2023 and 2024, Manchester continued to see growth in average home prices. The average home price reached $126,336 in 2023 and further increased to $132,477 in 2024. This represents a 6.7% increase from 2022 to 2024. Concurrently, federal interest rates remained elevated at 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and buyer decisions in the local market.
Looking ahead, predictive models suggest that average home prices in Manchester may continue their upward trajectory over the next five years, potentially reaching around $150,000 by 2029. This projection is based on the consistent growth observed in recent years and assumes relatively stable economic conditions. Average rent prices are also expected to increase, possibly reaching $600-$650 per month by 2029, reflecting the ongoing demand for rental properties and overall housing market trends.
In summary, Manchester has experienced a notable increase in average home prices over the past decade, coupled with fluctuations in homeownership rates. The recent rise in federal interest rates has coincided with a decrease in homeownership, while the rental market has seen growth in both occupancy and prices. These trends reflect the dynamic nature of the local housing market and suggest ongoing changes in housing preferences and affordability in this Ohio community.
