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Rising Home Values and Ownership in Medway, Ohio: A Decade of Real Estate Transformation
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
Medway, Ohio, is a small community located in Clark County. With a land area of just 0.48 square miles, this compact neighborhood has experienced notable shifts in its housing market and demographic composition over the past decade. The city has seen a general trend of increasing homeownership rates, fluctuating average home prices, and declining average rent prices.
Homeownership in Medway has shown a strong upward trend, rising from 82% in 2013 to an impressive 95% in 2022. This substantial increase in owner-occupied housing has coincided with a significant rise in average home prices. In 2013, the average home price was $80,802, which steadily increased to $156,359 by 2022, representing a 93.5% increase over this period. This trend suggests a growing preference for homeownership in the community, possibly driven by the perception of real estate as a sound investment.
The relationship between federal interest rates and homeownership rates in Medway appears to follow the general economic principle that lower interest rates tend to encourage homeownership. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates in Medway increased from 82% to 88%. Even as interest rates began to rise from 2017 to 2019, homeownership rates remained stable at around 88-89%, indicating a strong desire for homeownership in the community despite changing economic conditions.
Conversely, the percentage of renters in Medway has decreased significantly, dropping from 18% in 2013 to just 5% in 2022. This decline in the renter population has been accompanied by a substantial decrease in average rent prices. In 2013, the average rent was $1,093, which fell to $780 by 2022, a 28.6% decrease. This trend could be attributed to the shrinking pool of renters in the area, potentially leading to less competition for rental properties and downward pressure on rent prices.
As of 2024, the average home price in Medway has reached $175,516, continuing the upward trend observed in previous years. The federal interest rate for 2024 stands at 5.33%, which is significantly higher than the rates seen in the early 2020s. Despite this increase in interest rates, the community's strong preference for homeownership appears to be maintaining upward pressure on home prices.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in Medway will continue to rise over the next five years, potentially reaching around $200,000 by 2029. This forecast assumes a continuation of the strong homeownership trend and steady economic growth. Average rent prices, however, may stabilize or experience modest increases, potentially reaching around $850 by 2029, as the rental market adjusts to the limited supply of rental properties in the area.
In summary, Medway has experienced a significant shift towards homeownership over the past decade, with a corresponding increase in average home prices and decrease in both the renter population and average rent prices. The community's strong preference for homeownership, coupled with historical low interest rates, has driven these trends. As interest rates have recently increased, it will be interesting to observe how this affects the housing market dynamics in this small Ohio community in the coming years.
