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Rising Home Values and High Ownership Rates: Valley View'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
Valley View, Ohio, is a small community located in Cuyahoga County. With a population of 1,912 in 2022 and an area of 5.43 square miles, it offers a suburban atmosphere with a strong emphasis on homeownership. The village has consistently maintained a high percentage of owner-occupied housing units, with average home prices showing a steady increase over the years. Average rent prices have also risen, albeit at a more moderate pace.
Homeownership in Valley View has remained remarkably stable over the past decade, with the percentage of owner-occupied units ranging from 88% to 93%. This high rate of homeownership coincides with a consistent rise in average home prices. In 2013, the average home price was $193,814, and by 2022, it had increased to $306,291, representing a substantial 58% growth over nine years. This trend suggests a strong correlation between the community's preference for homeownership and the appreciation of property values.
The relationship between federal interest rates and homeownership rates in Valley View appears to follow the general trend of lower interest rates encouraging homeownership. For instance, from 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.40%), the village maintained a high 90% homeownership rate. Even as interest rates began to rise in subsequent years, reaching 1.68% in 2022, the homeownership rate in Valley View remained robust at 93%, indicating a strong local preference for owning rather than renting.
The renter population in Valley View has consistently been a small fraction of the total, fluctuating between 7% and 12% from 2013 to 2022. Despite this small renter population, average rent prices have shown a notable increase. In 2013, the average rent was $849, which rose to $949 by 2022, representing a 12% increase. Interestingly, there was a significant spike in average rent in 2021, reaching $1,063, before moderating in 2022. This trend suggests that even with a small renter population, the rental market in Valley View has experienced upward pressure on prices.
In 2023 and 2024, the average home prices in Valley View continued their upward trajectory. The average home price reached $313,317 in 2023 and further increased to $320,183 in 2024. This represents a 2.3% and 2.2% year-over-year increase in 2023 and 2024, respectively. Notably, these price increases occurred despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, indicating a resilient housing market in the village.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in Valley View will continue to appreciate, albeit at a more moderate pace. A five-year forecast suggests average home prices could reach approximately $350,000 to $370,000 by 2029. Average rent prices are also expected to continue their upward trend, potentially reaching around $1,100 to $1,200 per month in the same timeframe.
In summary, Valley View demonstrates a strong and stable housing market characterized by high homeownership rates and steadily increasing property values. The community has shown resilience in maintaining its homeownership levels even in the face of rising interest rates. The rental market, while small, has also seen consistent growth in average prices. These trends, combined with the village's suburban appeal, suggest a continued positive outlook for Valley View's real estate market in the coming years.
