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Polaris South: Rising Home Values and Shifting Ownership in a Growing Columbus Neighborhood
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
Polaris South, a neighborhood in Columbus, Ohio, has undergone significant changes in its housing market over the past decade. This area has experienced a notable shift in its ownership versus rental dynamics, accompanied by consistent growth in average home and rent prices. The neighborhood has generally trended towards a higher percentage of renters, while average home prices have shown substantial increases.
The homeownership rate in Polaris South has seen a significant decline from 2013 to 2022. In 2013, 49% of residents owned their homes, but by 2022, this figure had dropped to 30%. This decline in homeownership coincided with a steady increase in average home prices. In 2013, the average home price was $140,980, which rose to $292,221 by 2022, representing a substantial 107% increase over nine years. This inverse relationship suggests that rising home prices may have contributed to the decreasing affordability of homeownership in the area.
Federal interest rates have played a role in shaping homeownership trends in Polaris South. From 2013 to 2016, interest rates remained relatively low, hovering around 0.1% to 0.4%. During this period, homeownership rates declined from 49% to 40%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates continued to fall, reaching 28% in 2019. This trend suggests that despite low interest rates in the earlier years, other factors such as rising home prices may have outweighed the potential benefits of affordable financing for potential homebuyers.
The renter population in Polaris South has grown considerably, from 50% in 2013 to 70% in 2022. This increase in renters has been accompanied by a rise in average rent prices. In 2013, the average rent was $1,012, which increased to $1,397 by 2022, a 38% increase. The population of Polaris South has also grown significantly, from 1,113 in 2013 to 1,886 in 2022, a 69% increase. This population growth, combined with the shift towards renting, has likely contributed to the upward pressure on rent prices.
In 2023 and 2024, the average home prices in Polaris South continued their upward trajectory, reaching $308,511 in 2023 and $322,904 in 2024. This represents a 5.6% increase from 2022 to 2023, and a further 4.7% increase from 2023 to 2024. Interestingly, federal interest rates also saw a significant rise during this period, climbing to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007.
Looking ahead to the next five years, based on the trends observed, we can expect average home prices in Polaris South to continue rising, albeit potentially at a slower rate due to higher interest rates. Projections suggest that by 2029, average home prices could reach approximately $375,000 to $400,000. Average rent prices are also likely to continue their upward trend, potentially reaching around $1,650 to $1,750 per month by 2029.
In summary, Polaris South has experienced a significant shift towards a renter-majority population over the past decade, coupled with substantial increases in both average home prices and rent. The neighborhood's growing population and the inverse relationship between homeownership rates and home prices have been key factors in shaping these trends. As we move forward, the interplay between interest rates, housing affordability, and population growth will continue to influence the housing market in this dynamic Columbus neighborhood.
