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Rising Home Values and Ownership Trends in Zip Code 44827: Crestline'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
Zip code 44827, located in Crestline, Ohio, presents an intriguing case study of homeownership and housing market trends. This area has experienced notable fluctuations in ownership rates and housing prices over the past decade, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 44827 has shown resilience, maintaining a relatively high level throughout the observed period. In 2013, the ownership rate stood at 74%, and after a slight dip to 69% from 2015 to 2018, it rebounded to 74% by 2022. This trend coincides with significant changes in average home prices. In 2013, the average home price was $69,753, which steadily increased to $126,120 by 2022, representing an impressive 80.8% growth over nine years. This substantial appreciation in home values may have contributed to the sustained high ownership rates, as existing homeowners benefited from increased equity.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 44827. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This favorable financing environment likely supported the relatively high homeownership rates during this time. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in the area remained stable at 74%, suggesting a resilient local housing market.
Renter percentages in zip code 44827 have shown an inverse relationship to homeownership rates, naturally fluctuating between 26% and 31% over the observed period. Interestingly, average rent prices have demonstrated volatility, not always aligning with renter percentages. In 2013, the average rent was $536, which increased to $616 by 2019, representing a 14.9% rise. However, despite a slight decrease in the renter percentage from 31% in 2018 to 29% in 2019, rent prices continued to climb. This suggests that factors beyond simple supply and demand, such as local economic conditions or housing quality improvements, may influence rent prices in the area.
The years 2023 and 2024 have brought significant developments to the housing market in zip code 44827. Average home prices continued their upward trajectory, reaching $135,504 in 2023 and further increasing to $139,294 in 2024. This represents a 10.4% increase from 2022 to 2024, indicating a robust and growing housing market. Concurrently, federal interest rates have risen substantially, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying activity and affordability in the area.
Looking ahead, predictive models suggest that the strong growth in average home prices in zip code 44827 is likely to continue, albeit at a potentially moderated pace. Over the next five years, average home prices could reach the $160,000 to $170,000 range, assuming consistent economic conditions and demand. Average rent prices are also expected to increase, potentially surpassing $700 per month within the next five years, driven by overall housing market appreciation and potential shifts in local economic factors.
In summary, zip code 44827 demonstrates a robust housing market characterized by high homeownership rates and steadily increasing property values. The area has shown resilience in the face of fluctuating interest rates and economic conditions, maintaining strong ownership levels even as home prices have appreciated significantly. The rental market, while smaller, has also seen growth in prices, reflecting the overall strength of the local housing sector. As the area moves forward, it appears poised for continued growth in both home values and rental rates, making it an area of interest for both homeowners and investors.
