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Portage, Ohio: Rising Home Values and Ownership Rates Amid Market Fluctuations
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
Portage, Ohio, a small community, has experienced significant changes in its housing market over the past decade. From 2013 to 2022, the village saw an increase in homeownership rates from 61% to 68%, coinciding with a substantial rise in average home prices. During this period, home values increased by 91%, from $84,626 in 2013 to $161,707 in 2022. The relationship between homeownership percentages and average home prices showed a positive correlation. As home prices increased, the percentage of homeowners generally rose. For example, between 2013 and 2017, average home prices climbed from $84,626 to $117,840, while homeownership rates increased from 61% to 63%. This trend continued into 2022, with homeownership reaching 68% as average home prices hit $161,707. Federal interest rates appeared to influence homeownership rates in Portage. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 60%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership actually increased to 67%, possibly due to buyers rushing to purchase before rates climbed higher.
Renter percentages in Portage showed an inverse relationship to homeownership rates, decreasing from 39% in 2013 to 32% in 2022. Average rent prices fluctuated considerably during this period. In 2013, the average rent was $1,004, which decreased to $884 by 2016. It then rose sharply to $1,073 in 2017 before declining again to $845 in 2022. These fluctuations in rent prices don't show a clear correlation with the percentage of renters, suggesting other factors, such as local economic conditions or housing supply, may have played a role in renting trends.
In 2023 and 2024, Portage saw continued growth in average home prices, reaching $167,939 and $175,152 respectively. This represents an 8.3% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting future homeownership rates and market dynamics.
Looking ahead, predictive models suggest that average home prices in Portage will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices may stabilize or increase moderately as the rental market adjusts to changes in homeownership rates and overall housing demand.
In summary, Portage has experienced a clear trend of increasing homeownership rates alongside rising average home prices over the past decade. The interplay between federal interest rates, homeownership, and housing prices has been evident, with low rates generally corresponding to increased homeownership. The rental market has shown more volatility, with fluctuating prices and a declining percentage of renters. As the community moves forward, these trends will likely continue to shape the local housing market dynamics.
