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Rising Home Values and Declining Ownership in University of Ohio Akron's Unique Rental 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
The University of Ohio Akron neighborhood in Akron, Ohio, presents a unique housing market characterized by low homeownership rates and rapidly appreciating property values. This university district has experienced significant changes in both homeownership rates and home prices over the past decade, offering insights into urban development and housing dynamics in a college town setting. Homeownership rates in the University of Ohio Akron neighborhood have remained consistently low, typical of a university area. In 2013, the homeownership rate was 6%, which increased to 12% in 2015 and 2017, but decreased to 7% by 2022. Despite this low rate of ownership, average home prices have seen a substantial increase. The average home price rose from $31,755 in 2013 to $79,393 in 2022, marking a 150% increase over nine years. Interestingly, the relationship between federal interest rates and homeownership rates in this neighborhood does not follow typical patterns. Even with historically low interest rates from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership rates remained low and even declined slightly. This suggests that other factors, such as the transient nature of the student population and high demand for rental properties near the university, may have a stronger influence on homeownership rates in this area than interest rates alone.
The rental market dominates the neighborhood, with the percentage of renters ranging from 88% to 94% between 2013 and 2022. Despite high demand for rentals, average rent prices have shown a slight downward trend. The average rent decreased from $843 in 2013 to $709 in 2022, a 16% reduction. This trend could be attributed to factors such as increased housing supply or changes in the local student population. As of 2024, the average home price in the neighborhood has risen to $97,847, a significant 23% increase from 2022. This sharp rise coincides with higher federal interest rates, which stood at 5.33% in 2024. Despite these higher rates, which typically slow housing market growth, the neighborhood has seen continued appreciation in property values. Predictive models suggest that both average home prices and rent prices in the University of Ohio Akron neighborhood may continue to rise over the next five years. Home prices are expected to maintain their upward trajectory, potentially reaching or exceeding $120,000 by 2029. Rent prices, which have been decreasing, may stabilize and begin to increase again, possibly returning to levels around $800-$850 per month within the same timeframe. In conclusion, the University of Ohio Akron neighborhood exemplifies a unique housing market shaped by its strong ties to the university. The area is characterized by low homeownership rates, rapidly appreciating property values, and a slight downward trend in rental prices. As the neighborhood continues to evolve, it will be interesting to observe how these trends develop and impact the local community and student population.
