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Rising Home Values and Declining Ownership in Columbus' Preserve South
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Preserve South: A Decade of Real Estate Transformation Preserve South, a vibrant neighborhood in Columbus, Ohio, has experienced significant changes in its real estate landscape over the past decade. This area has seen a notable shift in homeownership rates and property values, reflecting broader economic trends and local development patterns. The interplay between these factors has reshaped the demographic and economic composition of the neighborhood.
Homeownership Decline and Property Value Surge From 2013 to 2022, Preserve South witnessed a substantial decrease in homeownership rates, dropping from 65% to 47%. This decline coincided with a remarkable increase in average home prices, which rose from $145,984 in 2013 to $292,655 in 2022, representing a 100.5% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents in the area.
Impact of Federal Interest Rates Federal interest rates have played a crucial role in shaping homeownership trends in Preserve South. Between 2013 and 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable at around 60%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates declined from 59% to 49%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Shift to Renting and Population Growth As homeownership declined in Preserve South, the percentage of renters increased from 35% in 2013 to 53% in 2022. This shift corresponded with changes in average rent prices, which rose from $1,136 in 2013 to $1,281 in 2022, an increase of 12.8%. During this period, the population of Preserve South grew from 7,869 in 2013 to 8,714 in 2022, potentially contributing to increased demand for rental properties and supporting higher rent prices despite the overall increase in housing supply.
Recent Trends and Future Projections In 2023 and 2024, Preserve South continued to see growth in average home prices, reaching $303,449 in 2023 and $315,462 in 2024, a 3.6% increase from 2023 to 2024. Federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership rates and property values in the neighborhood. Looking ahead, predictive models suggest that average home prices in Preserve South may continue to rise over the next five years, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,400 per month within the same timeframe.
Conclusion Preserve South has undergone a significant transformation in its real estate market over the past decade. The neighborhood has experienced a shift from homeownership to renting, driven by rising home prices and fluctuating interest rates. Property values have seen substantial appreciation, with average home prices more than doubling since 2013. As Preserve South continues to evolve, the balance between homeownership and renting will likely remain a key factor in shaping its demographic and economic landscape. These changes reflect the dynamic nature of urban neighborhoods and the complex interplay of economic factors that influence housing markets.
