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Rising Home Values and Stable Ownership: A Decade of Change in Zip Code 43072, St. Paris, Ohio
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 43072, located in St. Paris, Ohio, presents an interesting case study in homeownership and rental trends. This rural area has experienced significant fluctuations in both ownership rates and housing prices over the past decade. The overall trend shows a slight decrease in homeownership, coupled with a substantial increase in average home prices and some volatility in average rent prices.
The homeownership rate in zip code 43072 has shown a slight downward trend over the years, with some fluctuations. In 2013, the homeownership rate was 83%, which decreased to 79% by 2017. However, it rebounded to 84% in 2022. This trend correlates interestingly with the average home prices in the area. In 2013, the average home price was $118,779, which steadily increased to $214,708 by 2022, representing an 80.8% increase over nine years. This substantial rise in home prices may have contributed to the temporary dip in homeownership rates, as affordability became an issue for some residents.
Federal interest rates have played a significant role in homeownership trends in zip code 43072. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 83-84%. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, we observed a slight decrease in homeownership rates to 79-81%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The renter population in zip code 43072 has shown an inverse relationship to homeownership rates. In 2013, the renter-occupied percentage was 17%, which increased to 21% by 2017, before decreasing again to 16% in 2022. Average rent prices have been somewhat volatile during this period. In 2013, the average rent was $807, which decreased to $665 by 2018, representing a 17.6% drop. However, rent prices began to recover, reaching $699 by 2022. It's worth noting that the population of the zip code decreased from 6,264 in 2013 to 5,786 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, we see a continuation of the upward trend in average home prices. The average home price in zip code 43072 reached $222,118 in 2023 and further increased to $229,525 in 2024. This represents a 3.3% year-over-year increase from 2023 to 2024. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homeownership rates and affordability in the coming years.
Looking ahead, our predictive models forecast a continued increase in average home prices for zip code 43072 over the next five years. We anticipate average home prices to potentially reach around $260,000 to $270,000 by 2029, assuming current trends continue. For rent prices, we expect a modest increase, potentially reaching an average of $750 to $800 per month by 2029. However, these projections may be influenced by various factors such as economic conditions, population changes, and interest rate fluctuations.
In summary, zip code 43072 has experienced a significant increase in average home prices over the past decade, with a slight overall decrease in homeownership rates. The rental market has shown some volatility, with recent trends indicating a stabilization in both rent prices and the percentage of renters. The interplay between federal interest rates, home prices, and ownership rates highlights the complex dynamics of the local housing market. As we move forward, the area is likely to see continued growth in home values, potentially affecting affordability and homeownership rates in the coming years.
