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McPherson, Dayton: Rising Home Values Amidst Market Dynamics
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
McPherson, a neighborhood in Dayton, Ohio, has experienced significant changes in its real estate market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic shifts in the region. The overall trend shows increasing homeownership and rising average home values, alongside varying average rent prices. Homeownership rates in McPherson have shown an upward trend with some fluctuations. In 2013, the rate was 32%, which increased to 37% by 2021, before slightly decreasing to 32% in 2022. This general increase in homeownership coincides with a significant rise in average home prices. From 2019 to 2022, the average home price in McPherson rose from $115,176 to $154,307, representing a substantial 34% increase over just three years. The relationship between federal interest rates and homeownership rates in McPherson shows some correlation. Between 2013 and 2021, as interest rates remained low (around 0.1% to 1.83%), the neighborhood experienced a gradual increase in homeownership. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, in 2022, a slight dip in homeownership to 32% coincided with a rise in federal interest rates to 1.68%, suggesting that higher borrowing costs may have impacted some potential buyers.
Renter percentages in McPherson have fluctuated inversely to homeownership rates, as expected. The renter-occupied percentage decreased from 68% in 2013 to 63% in 2021, before rising again to 67% in 2022. Interestingly, average rent prices have shown a downward trend despite these fluctuations. The average rent peaked at $805 in 2013 and generally declined to $624 in 2022, with some variations in between. This trend could be attributed to changes in the local economy, housing supply, or demographic shifts within the neighborhood.
In 2023 and 2024, McPherson's real estate market continued to evolve. The average home price in 2023 was $143,523, showing a slight decrease from 2022. However, in 2024, the average home price rebounded to $149,945. This price increase occurred despite the federal interest rate rising to 5.33% in 2024, indicating strong demand in the local housing market despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in McPherson may continue to rise moderately over the next five years, potentially reaching around $165,000 by 2029. This forecast is based on the recent upward trend and assumes continued economic stability in the region. Average rent prices are expected to stabilize and potentially increase slightly, possibly reaching $650-$700 per month by 2029, reflecting the ongoing demand for rental properties in the area.
In summary, McPherson has demonstrated resilience in its housing market, with increasing homeownership rates and rising average home prices over the past decade. The neighborhood has weathered fluctuations in federal interest rates and demographic changes, maintaining a dynamic balance between owner-occupied and renter-occupied properties. As the area continues to evolve, it is likely to remain an attractive location for both homeowners and renters, with moderate growth expected in both average home prices and rental rates.
