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Rising Home Values and Shifting Ownership in Sharon Heights, Columbus
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Sharon Heights, a neighborhood in Columbus, Ohio, has experienced significant changes in its housing market over the past decade. This analysis focuses on the evolving trends in homeownership rates, average home prices, and rental prices from 2013 to 2024. The neighborhood has witnessed a gradual shift towards a higher percentage of renters, while both average home prices and rent prices have shown substantial increases. From 2013 to 2022, Sharon Heights saw a slight decline in homeownership rates. In 2013, the neighborhood had an equal split of 50% owners and 50% renters. By 2022, the percentage of owner-occupied homes had decreased to 46%, while renter-occupied homes increased to 54%. This shift coincided with a significant increase in average home prices. The average home price in Sharon Heights rose from $135,747 in 2013 to $287,645 in 2022, representing a remarkable 112% increase over nine years.
The relationship between federal interest rates and homeownership rates in Sharon Heights shows some correlation. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 47-50%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates slightly declined to 46%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Sharon Heights increased from 50% in 2013 to 54% in 2022. This rise in renter-occupied homes corresponds with an increase in average rent prices. The average rent rose from $840 per month in 2013 to $1,097 in 2022, representing a 30.6% increase over nine years. The population of Sharon Heights remained stable during this period, with 8,007 residents in 2013 and 8,006 in 2022, suggesting that the increase in renters and rent prices is not primarily driven by population growth.
In 2023 and 2024, average home prices in Sharon Heights continued to rise. The average home price reached $301,923 in 2023 and further increased to $313,188 in 2024. This represents a 4.9% year-over-year increase from 2022 to 2023 and a 3.7% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis.
Based on the observed trends, it is predicted that average home prices in Sharon Heights will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the growing preference for renting in the neighborhood. However, the rate of increase may moderate as affordability becomes a more pressing concern for residents.
In summary, Sharon Heights has experienced a shift towards a higher percentage of renters over the past decade, accompanied by substantial increases in both average home prices and average rent prices. The neighborhood has shown resilience in terms of population stability, while adapting to changing housing market conditions. The recent surge in interest rates, combined with consistently rising home prices, may continue to influence the balance between homeownership and renting in the coming years.
