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Rising Home Values and Shifting Ownership in Beachwood, Ohio: A Decade of Housing Market Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Beachwood, Ohio, a suburban city in Cuyahoga County, has experienced significant changes in its housing market over the past decade. Known for its thriving business district and excellent school system, this small but dynamic community of 13,846 residents as of 2022 has seen notable shifts in homeownership rates, average home prices, and rental trends. The city's housing landscape has evolved, reflecting broader economic and demographic changes.
The relationship between homeownership rates and average home prices in Beachwood reveals an interesting pattern. As average home prices increased from $256,894 in 2010 to $397,263 in 2022, representing a 54.6% rise, the percentage of owner-occupied homes decreased from 63% in 2013 to 58% in 2022. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents. For instance, when average home prices reached $305,750 in 2018, the homeownership rate stood at 61%, but as prices continued to climb to $397,263 in 2022, the rate dropped to 58%.
Federal interest rates have played a significant role in shaping homeownership trends in Beachwood. The period of historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.4%, coincided with relatively stable homeownership rates between 59% and 65%. However, as interest rates began to rise in 2022 to 1.68%, the homeownership rate declined to 58%, suggesting that higher borrowing costs may have deterred potential buyers.
The rental market in Beachwood has shown an inverse relationship to homeownership trends. As the percentage of renter-occupied homes increased from 37% in 2013 to 42% in 2022, average rent prices also experienced an overall upward trend. In 2013, the average rent was $1,619, which fluctuated over the years before reaching $1,773 in 2022. The population growth from 11,677 in 2019 to 13,846 in 2022 likely contributed to increased demand for rental properties, supporting both higher renter percentages and rent prices.
In 2023 and 2024, Beachwood's housing market continued to evolve. Average home prices rose to $423,876 in 2023 and further increased to $444,888 in 2024, representing a 12% growth over two years. This surge occurred despite federal interest rates climbing to 5.02% in 2023 and 5.33% in 2024, indicating strong demand for housing in the area despite higher borrowing costs.
Looking ahead, predictive models suggest that Beachwood's housing market will likely continue its upward trajectory over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $515,000 by 2029. Average rent prices are expected to follow a similar trend, with an estimated annual growth of 2-4%, potentially reaching $2,000 per month by 2029.
In summary, Beachwood has experienced a gradual shift towards renting, with homeownership rates declining as average home prices have risen significantly. The interplay between federal interest rates, housing prices, and rental demand has shaped these trends. Despite rising interest rates, the housing market remains robust, with continued price appreciation expected in both the homeownership and rental sectors over the next five years.
