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Rising Home Values and Declining Ownership: Bowling Green's Evolving Housing Market
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
Bowling Green, Ohio, a university town known for its cultural heritage and home to Bowling Green State University, has experienced significant changes in its housing landscape over the past decade. Located in Wood County, this vibrant city has witnessed a gradual decrease in homeownership rates alongside fluctuating average home prices and rent costs.
The homeownership rate in Bowling Green has steadily declined from 44% in 2013 to 38% in 2022. Concurrently, average home prices have shown a consistent upward trend, rising from $151,559 in 2013 to $230,893 in 2022, representing a substantial 52.3% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for many residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Bowling Green. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 43-44%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), the homeownership rate dropped to 40%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates declined, the percentage of renters in Bowling Green increased from 56% in 2013 to 62% in 2022. Average rent prices have not shown a consistent upward trend during this period. The average rent rose from $785 in 2013 to a peak of $890 in 2017 but then fluctuated, settling at $812 in 2022. This pattern suggests that while more residents are renting, other factors such as increased housing supply or economic conditions may be moderating rent increases.
In 2023, the average home price in Bowling Green reached $243,324, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $246,280, while interest rates have slightly risen to 5.33%. These figures indicate a continuing upward trend in home prices, albeit at a slower pace, coupled with higher borrowing costs for potential homebuyers.
Looking ahead, predictive models suggest that average home prices in Bowling Green may continue to rise over the next five years, potentially reaching around $275,000 by 2029. However, this growth rate is expected to be more moderate compared to the rapid increases seen in recent years. Average rent prices are projected to show modest growth, potentially reaching approximately $875 per month by 2029, assuming current economic conditions and housing supply trends persist.
In summary, Bowling Green has experienced a clear shift towards a renter-majority market over the past decade, with homeownership rates declining as average home prices have risen substantially. The interplay between federal interest rates, housing affordability, and changing demographics has significantly influenced these trends. As the city continues to evolve, balancing housing affordability with economic growth will likely remain a key challenge for local policymakers and residents alike.
