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Rising Home Values and Stable Ownership in Lebanon, Ohio: A Decade of Housing Market Resilience
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
Lebanon, Ohio, a charming city located in Warren County, has experienced notable changes in its real estate landscape over the past decade. With a population of 30,199 in 2022 and spanning 12.8 square miles, this suburban community has seen fluctuations in homeownership rates, average home prices, and average rent prices. The city has maintained a relatively stable ownership percentage, hovering around 70%, while average home prices and average rent have shown an upward trend.
The relationship between homeownership rates and average home prices in Lebanon reveals interesting patterns. In 2013, the homeownership rate was 69% with an average home price of $182,342. As average home prices steadily increased, reaching $249,818 in 2019, the homeownership rate slightly decreased to 68%. However, by 2022, despite a significant jump in average home prices to $341,768, the homeownership rate rebounded to 71%. This suggests that Lebanon's residents have maintained a strong desire for homeownership, even in the face of rising prices.
Federal interest rates have played a role in shaping homeownership trends in Lebanon. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 70-71%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 68-69%. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with an increase in homeownership back to 70-71%, likely due to more affordable financing options.
Renter percentages and average rent prices in Lebanon have shown some correlation. In 2013, the renter percentage was 31% with an average rent of $1,106. As the renter percentage decreased slightly to 28% in 2015, the average rent also dipped to $1,052. However, by 2019, as the renter percentage increased to 32%, the average rent rose to $1,185. The renter percentage then decreased to 29% in 2022, while average rent continued to climb, reaching $1,252. This suggests that while renter demand has fluctuated, overall rent prices have trended upward, possibly due to improved amenities or increased housing quality.
In 2023 and 2024, Lebanon's real estate market continued to evolve. The average home price in 2023 was $357,260, showing a 4.5% increase from 2022. In 2024, the average home price further increased to $370,768, representing a 3.8% growth from the previous year. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the city.
Looking ahead, predictive models suggest that average home prices in Lebanon may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $425,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $1,500 by 2029, assuming current trends continue and barring any major economic shifts.
In summary, Lebanon, Ohio has demonstrated resilience in its homeownership rates despite rising home prices. The interplay between federal interest rates, homeownership, and renting trends has shaped the city's real estate market. While both average home prices and average rent have shown upward trajectories, the community has maintained a strong preference for homeownership. As the city continues to grow and evolve, these trends will likely play a crucial role in shaping Lebanon's housing market and community dynamics in the coming years.
