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Rising Home Values and Renter Dominance in Middlebury, Akron: A Decade of Housing Shifts
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
Middlebury, a neighborhood in Akron, Ohio, has experienced significant changes in its housing market over the past decade. The area has seen a notable shift in homeownership rates and a substantial increase in average home prices, reflecting broader economic changes and local market conditions. The homeownership rate in Middlebury has declined from 37% in 2017 to 31% in 2022. This decrease coincided with a dramatic rise in average home prices, which increased from $26,924 in 2017 to $54,855 in 2022, representing a 104% increase over five years. The inverse relationship between homeownership rates and home prices suggests that rising property values may have made homeownership less accessible for many residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Middlebury. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable at 31-34%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate initially increased to 37% in 2017 but then declined to 31% by 2022. This pattern indicates that while low interest rates initially supported homeownership, the subsequent rise in rates, combined with increasing home prices, may have made homeownership less attainable for many residents.
The renter population in Middlebury has grown from 63% in 2017 to 69% in 2022, inversely mirroring the decline in homeownership. During this period, average rent prices increased from $683 in 2017 to $789 in 2022, a 15.5% rise. This increase in rent prices, while significant, was not as dramatic as the surge in home prices, potentially explaining the shift towards renting. The neighborhood's population decreased from 5,592 in 2017 to 5,078 in 2022, which may have influenced the rental market dynamics, possibly leading to a more competitive rental environment despite the population decline.
In 2023 and 2024, Middlebury continued to see growth in average home prices, reaching $57,618 in 2023 and climbing further to $65,971 in 2024. This represents a 20.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, hitting 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade. These high interest rates, combined with rising home prices, are likely to further impact homeownership affordability in the neighborhood.
Predictive models suggest that average home prices in Middlebury may continue to rise over the next five years, potentially reaching around $80,000 by 2029 if current trends persist. Average rent prices are also expected to increase, potentially surpassing $900 per month within the same timeframe. However, these projections should be considered with caution as they are subject to various economic factors and market conditions.
In summary, Middlebury has experienced a significant shift towards renting, driven by rapidly increasing home prices and fluctuating interest rates. The neighborhood has seen substantial appreciation in property values, particularly in recent years, which has outpaced the growth in rental costs. These trends suggest a changing landscape in Middlebury's housing market, with potential implications for community demographics and future development priorities.
