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Rising Home Values and Stable Ownership: Baltic's Resilient Housing 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
Baltic, Ohio, a small community with a fluctuating population between 4,600 and 5,300 residents over the past decade, has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Baltic has remained relatively stable, ranging from 72% to 78% between 2013 and 2022. During this period, average home prices showed a consistent upward trend, increasing from $147,508 in 2013 to $289,419 in 2022, representing a substantial 96% growth over nine years. Despite this significant rise in home values, the percentage of owner-occupied homes remained at 75% in 2022, indicating a resilient local housing market. Federal interest rates have influenced homeownership trends in Baltic. From 2013 to 2016, when interest rates were exceptionally low (0.11% to 0.40%), homeownership rates remained high, ranging from 74% to 78%. As interest rates rose more sharply from 2017 (1%) to 2019 (2.16%), there was a slight decline in homeownership, dropping to 72% in 2019. However, when rates plummeted again in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rebounded to 75%, demonstrating the inverse relationship between interest rates and homeownership.
The rental market in Baltic has shown interesting trends in relation to average rent prices and the percentage of renters. In 2013, the average rent was $603, with 26% of residents renting. By 2022, the average rent had increased to $786, a 30% rise, while the percentage of renters remained steady at 25%. This suggests that despite rising rent prices, the proportion of renters in the community has remained relatively stable, possibly due to factors such as job market stability or limited housing alternatives.
In 2023 and 2024, Baltic saw continued growth in average home prices, reaching $297,934 in 2023 and $304,437 in 2024. This represents a 5.2% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the village.
Looking ahead, predictive models suggest that average home prices in Baltic may continue to rise, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach around $340,000 to $360,000, assuming current economic conditions persist. Average rent prices are also expected to increase, potentially reaching $850 to $900 per month by 2029, reflecting ongoing demand for rental properties in the area.
In summary, Baltic has demonstrated a robust housing market with steadily increasing home values and a stable homeownership rate. The interplay between federal interest rates, home prices, and rental trends has shaped the local real estate landscape, with the community showing resilience in the face of economic fluctuations. As the village moves forward, it is likely to see continued growth in both home values and rental prices, maintaining its character as a predominantly owner-occupied community.
