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Parma, Ohio: Rising Home Values and Stable Ownership in Cleveland's Resilient Suburb
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Parma, Ohio, a vibrant suburb of Cleveland, has experienced notable shifts in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, revealing interesting patterns and potential future trajectories. In Parma, homeownership rates have shown resilience, with a slight overall increase from 70% in 2016 to 73% in 2022. This trend has occurred alongside a significant rise in average home prices, which grew from $106,750 in 2016 to $173,626 in 2022, representing a 62.6% increase over six years. This suggests that despite rising home values, Parma has maintained its appeal as a city for homeowners.
The relationship between federal interest rates and homeownership rates in Parma presents an interesting dynamic. As interest rates remained low between 2016 and 2020, ranging from 0.4% to 0.38%, homeownership rates in Parma fluctuated slightly but generally remained stable. However, as interest rates began to rise more sharply in 2022 to 1.68%, homeownership rates in Parma actually increased from 72% in 2019 to 73% in 2022, indicating that local factors may have played a more significant role in homeownership decisions than national interest rates during this period.
Renter percentages in Parma have shown a slight decrease, from 30% in 2016 to 27% in 2022. During this same period, average rent prices increased steadily from $804 in 2016 to $957 in 2022, a 19% increase. This trend suggests that while rental costs have risen, the proportion of renters in the city has decreased slightly, possibly indicating a shift towards homeownership or changes in the city's demographic composition.
Looking at the most recent data, average home prices in Parma continued their upward trajectory, reaching $181,869 in 2023 and $193,195 in 2024. This represents a 4.7% increase from 2022 to 2023 and a further 6.2% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting housing affordability and market dynamics.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and rent prices in Parma. Based on the historical data and current trends, average home prices could potentially reach around $230,000 to $250,000 by 2029. Average rent prices, following their current trajectory, might increase to approximately $1,100 to $1,200 per month in the same timeframe.
In summary, Parma's housing market has demonstrated resilience and growth, with increasing homeownership rates despite rising home prices. The rental market has seen steady increases in average rent, although the proportion of renters has slightly decreased. The city's ability to maintain stable homeownership rates in the face of rising prices and increasing interest rates suggests a strong local housing market. As Parma continues to evolve, these trends indicate a potentially robust and dynamic housing landscape in the coming years.
