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Rising Home Values and Declining Ownership: Xenia's Resilient Housing Market After 1974 Tornado
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Xenia, Ohio, a city with a rich history dating back to its founding in 1803, has experienced notable shifts in its housing market over the past decade. Located in Greene County, Xenia is known for its resilience, having rebuilt after a devastating tornado in 1974. The city has seen fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting broader economic trends and local market dynamics.
From 2013 to 2022, Xenia experienced a gradual decline in homeownership rates, dropping from 67% to 62%. This trend coincided with a substantial increase in average home prices. In 2013, the average home price in Xenia was $121,510, but by 2022, it had risen to $212,605, representing a 75% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents, contributing to the decrease in owner-occupied housing.
The relationship between federal interest rates and homeownership rates in Xenia shows some correlation. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates remained relatively stable at around 66-67%. However, as interest rates began to rise more significantly from 2016 onwards, reaching 1.68% by 2022, homeownership rates in Xenia declined to 62%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
Conversely, the percentage of renters in Xenia increased from 33% in 2013 to 38% in 2022. This rise in renters corresponded with an overall increase in average rent prices, albeit with some fluctuations. In 2013, the average rent was $808, which rose to $876 by 2020, before slightly decreasing to $836 in 2022. The overall trend shows a 3.5% increase in average rent over this period, despite some year-to-year variations. The growing renter population, coupled with rising rent prices, suggests increased demand for rental properties in Xenia.
As of 2024, the average home price in Xenia has reached $229,965, continuing the upward trend observed in previous years. This represents a 8.2% increase from the 2022 average of $212,605. Concurrently, the federal interest rate stands at 5.33% in 2024, a significant rise from the 1.68% rate in 2022. This higher interest rate environment may further impact homeownership trends in Xenia.
Looking ahead, predictive models suggest that average home prices in Xenia could continue to rise over the next five years, potentially reaching around $260,000 by 2029 if current trends persist. Average rent prices may also see a moderate increase, potentially approaching $900 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, Xenia has experienced a clear shift towards a higher proportion of renters over the past decade, coinciding with substantial increases in average home prices. The inverse relationship between homeownership rates and home prices, coupled with rising interest rates, has likely contributed to this trend. As the city continues to evolve, these housing market dynamics will play a crucial role in shaping Xenia's residential landscape and community composition.
