Loading Content...
Rising Home Values and Shifting Ownership in Niles, Ohio: A Decade of Housing Market Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Niles, a city in Ohio, has experienced notable shifts in homeownership rates and housing prices over the past decade. This analysis explores the trends in ownership percentages, average home prices, and average rent prices, providing insights into the local real estate market dynamics.
Between 2013 and 2022, Niles saw a significant decline in homeownership rates, dropping from 66% to 59%. During this same period, average home prices in the city showed a remarkable increase. In 2013, the average home price was $64,290, which rose steadily to reach $105,901 by 2022, representing a 64.7% increase over nine years. This inverse relationship between homeownership rates and housing prices suggests that rising property values may have made homeownership less accessible for some residents.
The federal interest rates have played a crucial role in shaping homeownership trends in Niles. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1% to 0.4%. During this period, homeownership rates in Niles declined from 66% to 58%, despite the favorable borrowing conditions. This unexpected trend might be attributed to other local economic factors outweighing the impact of low interest rates. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in Niles stabilized around 59%, suggesting a complex interplay between interest rates and local housing market dynamics.
Rental trends in Niles have shown interesting patterns as well. The percentage of renters increased from 34% in 2013 to 41% in 2022. Correspondingly, average rent prices rose from $713 in 2013 to $789 in 2022, an increase of 10.7%. This growth in the renter population and rent prices occurred despite a slight decline in the city's overall population, which decreased from 20,801 in 2013 to 19,976 in 2022. The rise in rental demand, even with a shrinking population, may indicate changing housing preferences or economic conditions in the city.
In 2023 and 2024, Niles continued to see growth in average home prices. The average home price reached $112,269 in 2023 and further increased to $119,659 in 2024, representing a 13% rise from 2022 levels. This growth occurred despite federal interest rates climbing to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to cool the housing market.
Looking ahead, based on the observed trends, we can predict that average home prices in Niles may continue to rise over the next five years, potentially reaching around $140,000 by 2029. However, this growth rate might slow down if interest rates remain high. Average rent prices are also likely to increase, possibly reaching $850-$900 per month by 2029, assuming the current trends persist.
In summary, Niles has experienced a notable shift from homeownership to renting over the past decade, accompanied by substantial increases in both home prices and rent. Despite a slight population decline, the housing market has shown resilience and growth. The city's real estate landscape continues to evolve, with recent years showing continued price appreciation even in the face of rising interest rates, suggesting a robust local housing market.
