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Newtown, Ohio: Rising Home Values Amidst Declining Ownership
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
Newtown, located in Ohio, is a small community with a population of 3,094 as of 2022. This quaint village, covering an area of 2.07 square miles, has experienced interesting shifts in homeownership and housing prices over the past decade.
The homeownership rate in Newtown has remained relatively stable, with a slight overall decrease from 73% in 2013 to 68% in 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $126,967, which steadily increased to $229,037 by 2022, representing an impressive 80.4% growth over nine years. This substantial rise in home values, despite a minor decline in homeownership rates, suggests a strong local housing market with increasing property values.
Federal interest rates have played a significant role in shaping homeownership trends in Newtown. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 65-70%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates showed slight fluctuations but generally maintained around 67-70%. This resilience in homeownership rates, even as interest rates increased, indicates a robust local housing market and sustained demand for homeownership in Newtown.
Renter percentages in Newtown have shown some variability, ranging from 27% in 2013 to 32% in 2022. Interestingly, average rent prices have steadily increased during this period. In 2013, the average rent was $1,101, which rose to $1,167 by 2022, marking a 6% increase. The peak in average rent was observed in 2021 at $1,289, coinciding with a period of extremely low federal interest rates (0.08%). This trend suggests that despite fluctuations in the renter population, demand for rental properties has remained strong, driving up average rent prices.
In 2023, the average home price in Newtown reached $242,775, continuing the upward trend seen in previous years. This represents a 6% increase from 2022. The federal interest rate in 2023 was 5.02%, significantly higher than in recent years. Moving into 2024, the average home price has further increased to $249,556, indicating a 2.8% growth from 2023. The federal interest rate for 2024 stands at 5.33%, slightly higher than the previous year.
Looking ahead, based on the consistent upward trend in home prices and the recent increases in interest rates, it's projected that average home prices in Newtown will continue to rise over the next five years, albeit at a potentially slower pace. Average home prices could reach approximately $275,000 to $285,000 by 2029. Similarly, average rent prices are expected to follow this upward trajectory, potentially reaching around $1,350 to $1,400 by 2029, assuming current economic conditions and local market factors remain relatively stable.
In summary, Newtown has demonstrated a resilient housing market characterized by steadily increasing home values and rent prices. Despite minor fluctuations in homeownership rates, the overall trend suggests a strong demand for both owned and rented properties. The village's ability to maintain relatively stable homeownership rates, even in the face of rising interest rates and home prices, indicates a robust local economy and an attractive living environment for residents.
