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Rising Home Values and Ownership in Ohio, Illinois: A Small Community's Housing Dynamics
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
Ohio, Illinois, is a small community with a population that has fluctuated around 900 residents in recent years. The village has experienced notable changes in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. Homeownership in Ohio has shown an overall increasing trend from 2013 to 2022. In 2013, the homeownership rate was 81%, and by 2022, it had risen to 86%. This 5% increase suggests a growing preference for homeownership in the community. Concurrently, average home prices have seen significant growth. From 2017 to 2022, average home prices rose from $72,120 to $111,697, representing a substantial 54.9% increase over five years.
The relationship between federal interest rates and homeownership rates in Ohio aligns with well-established economic principles. As interest rates remained low from 2013 to 2020, hovering between 0.08% and 2.16%, homeownership rates generally trended upward. This period of low interest rates likely made mortgages more affordable, encouraging home purchases. The homeownership rate peaked at 86% in 2022, coinciding with interest rates beginning to rise to 1.68%.
Renter percentages in Ohio have generally decreased as homeownership increased. In 2013, renters occupied 18% of housing units, and by 2022, this figure had dropped to 14%. Despite this decrease in the renter population, average rent prices showed an upward trend. Average monthly rent increased from $593 in 2013 to $705 in 2022, a 18.9% rise over nine years. This increase in rent prices, despite a smaller renter population, could indicate a tightening rental market or improved quality of rental properties.
In 2023 and 2024, average home prices in Ohio continued to rise, reaching $118,862 in 2023 and $127,107 in 2024. This represents a 13.8% increase from 2022 to 2024. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting future homeownership trends.
Looking ahead, predictive models suggest that average home prices in Ohio may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, possibly at a faster rate if homeownership becomes less affordable due to higher mortgage rates.
In summary, Ohio has experienced a significant increase in homeownership rates and average home prices over the past decade. The inverse relationship between homeownership and rental percentages, coupled with rising home and rent prices, indicates a dynamic and evolving housing market in this small Illinois community. The recent sharp increase in interest rates may lead to shifts in these trends in the coming years.
