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Rising Home Values and Ownership in Rural Ohio: A Look at Zip Code 45894
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
Zip code 45894, located in Elgin, Ohio, presents an interesting case study in homeownership and housing market trends. This rural area has maintained consistently high homeownership rates over the past decade, with average home prices steadily increasing and average rent prices showing notable fluctuations. Homeownership in this zip code has remained remarkably stable, with rates ranging from 85% to 90% between 2013 and 2022. This high level of homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $107,744, which grew to $187,412 by 2022, representing a 74% increase over nine years. This upward trend in home values appears to have had little impact on the homeownership rate, suggesting a strong preference for owning rather than renting in this community.
The relationship between federal interest rates and homeownership rates in this zip code seems to deviate from typical patterns. Despite fluctuations in federal interest rates, homeownership rates remained relatively constant. For instance, when interest rates rose from 0.13% in 2015 to 1.83% in 2018, homeownership actually increased slightly from 89% to 90%. This suggests that local factors may have a stronger influence on homeownership decisions in this area than national interest rate trends.
Renter percentages in zip code 45894 have remained low, fluctuating between 10% and 15% from 2013 to 2022. Interestingly, average rent prices have shown a general downward trend during this period. In 2013, the average rent was $1,124, which decreased to $590 by 2022, a 47.5% reduction. This decline in rent prices occurred despite the area's population remaining relatively stable, ranging from 730 to 832 residents during this period. The inverse relationship between falling rent prices and steady population levels suggests that factors other than population growth are influencing the rental market in this area.
In 2023 and 2024, the housing market in zip code 45894 continued its upward trajectory. The average home price reached $190,439 in 2023 and further increased to $202,225 in 2024, representing a 6.2% growth over this two-year period. This rise occurred against a backdrop of significantly higher interest rates, with federal rates at 5.02% in 2023 and 5.33% in 2024, the highest levels seen in over a decade.
Looking ahead, predictive models suggest that average home prices in zip code 45894 will continue to rise over the next five years, potentially reaching around $240,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices, however, are more challenging to predict given their recent volatility. If the downward trend continues, rents could potentially decrease further to around $500 per month by 2029, but this could stabilize or reverse if economic conditions change.
In summary, zip code 45894 demonstrates a strong preference for homeownership, with steadily increasing home values despite fluctuations in interest rates. The rental market, while small, has seen declining prices, creating an interesting dynamic in this rural Ohio community. The continued rise in home prices, even in the face of higher interest rates, suggests a robust local housing market with potential for further growth in the coming years.
