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Rising Home Values and High Ownership Rates in Zip Code 44491: West Farmington's Resilient 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
West Farmington, located in zip code 44491 in Ohio, has experienced significant shifts in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices in this rural community.
The homeownership rate in West Farmington has shown a steady increase from 2013 to 2022. In 2013, 91% of residents were homeowners, and this percentage rose to 93% by 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. The average home price in the area grew from $124,341 in 2013 to $230,228 in 2022, representing an impressive 85% increase over this period.
The relationship between federal interest rates and homeownership rates in West Farmington appears to follow the general trend of lower interest rates encouraging homeownership. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate remained stable at around 88-89%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate actually increased to 93%, suggesting that other local factors may have played a more significant role in driving homeownership in this particular area.
The percentage of renters in West Farmington decreased from 9% in 2013 to 7% in 2022. Interestingly, despite this decrease in the renter population, average rent prices experienced significant fluctuations. Average rent peaked at $850 in 2015 before declining to $546 in 2022, a 36% decrease. This trend might be attributed to the decreasing population density, which fell from 117.57 per square mile in 2013 to 121.49 in 2022, potentially reducing demand for rental properties.
In 2023, the average home price in West Farmington reached $240,927, continuing the upward trend observed in previous years. The federal interest rate for 2023 was 5.02%, significantly higher than in recent years. Moving into 2024, the average home price has further increased to $248,219, while the federal interest rate has risen slightly to 5.33%. These figures indicate a continued strong housing market despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in West Farmington are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices, which have been declining, may stabilize or experience modest increases as the local economy adjusts to changing demographics and housing preferences.
In summary, West Farmington has seen a notable increase in homeownership rates and average home prices over the past decade, while experiencing a decline in the renter population and average rent prices. The community's housing market has shown resilience in the face of rising interest rates, with continued growth in home values through 2023 and into 2024. These trends reflect a strong preference for homeownership in this rural Ohio village, potentially driven by local economic factors and community characteristics.
