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Rising Home Values and Shifting Ownership Trends in Zip Code 43522: Grand Rapids, Ohio's Evolving Real Estate 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 43522, located in Grand Rapids, Ohio, has experienced notable shifts in its housing market over the past decade. This small community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
The homeownership rate in zip code 43522 has shown a slight decline over the years, dropping from 89% in 2015 to 83% in 2022. This change coincides with a significant increase in average home prices, which rose from $135,086 in 2015 to $213,039 in 2022, representing a 57.7% increase over seven years. The relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2015 to 2021 saw historically low interest rates, ranging from 0.13% to 0.08%. This favorable lending environment likely contributed to the relatively high homeownership rates observed during this time. However, as interest rates began to rise sharply in 2022 to 1.68%, we see a corresponding dip in homeownership from 86% in 2020 to 83% in 2022, indicating that higher borrowing costs may have deterred some potential buyers.
The rental market in zip code 43522 has shown interesting trends as well. The percentage of renters increased from 11% in 2015 to 17% in 2022. Concurrently, average rent prices fluctuated, with notable changes from $746 in 2015 to a peak of $1,038 in 2021, before settling at $861 in 2022. The population growth from 3,310 in 2015 to 3,803 in 2022 may have contributed to increased demand for rental properties, potentially influencing both rent prices and the proportion of renters in the area.
In 2023 and 2024, the housing market in zip code 43522 continued to evolve. Average home prices reached $222,435 in 2023 and further increased to $233,112 in 2024, representing a 4.3% and 4.8% year-over-year growth, respectively. This steady appreciation occurred despite the federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the rates seen in the previous decade.
Looking ahead, predictive models suggest that average home prices in zip code 43522 may continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the ongoing demand for rental properties. However, the rate of increase for both home prices and rents may moderate compared to the rapid growth seen in recent years.
In summary, zip code 43522 has experienced a gradual shift towards a slightly higher proportion of renters, alongside substantial increases in average home prices. The interplay between federal interest rates, population growth, and local economic factors has shaped these trends. As the community continues to grow and adapt, the housing market is likely to remain dynamic, with homeownership rates, property values, and rental prices continuing to respond to broader economic conditions and local demand.
