Loading Content...
Rising Home Values and Steady Ownership: Forest Park, Ohio's Robust Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Forest Park, Ohio, a diverse city in Hamilton County near Cincinnati, has experienced significant changes in its housing market over the past decade. The city's homeownership rate has remained relatively stable, fluctuating between 55% and 59% from 2013 to 2022. In 2013, 58% of residents owned their homes, a figure that remained unchanged in 2022. Despite this stability in ownership rates, average home prices have shown a remarkable upward trend. The average home price in 2010 was $100,842, which rose dramatically to $203,362 by 2022, representing a 101.7% increase over 12 years. This substantial rise in home values, particularly from 2020 onwards, has not resulted in a corresponding decrease in homeownership rates, suggesting strong local demand and potentially improved economic conditions for residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Forest Park. From 2010 to 2016, interest rates were historically low, ranging from 0.09% to 0.4%. During this period, homeownership rates remained relatively stable at around 57-58%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership to 59% in 2017, possibly due to buyers rushing to secure mortgages before further rate increases. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight decrease in homeownership to 57%, potentially due to economic uncertainties during the COVID-19 pandemic.
Renter percentages in Forest Park have shown minor fluctuations, ranging from 40% to 43% between 2013 and 2022. Average rent prices have generally increased over this period, rising from $1,069 in 2013 to $1,194 in 2022, an 11.7% increase. Notably, there was a significant jump in average rent from $1,216 in 2020 to $1,353 in 2021, an 11.3% increase in a single year, before decreasing slightly to $1,194 in 2022. This trend aligns with the city's population growth, which increased from 19,543 in 2013 to 21,392 in 2022, potentially driving up rental demand and prices.
In 2023 and 2024, Forest Park's housing market continued its upward trajectory. The average home price reached $217,431 in 2023 and further increased to $228,383 in 2024, representing a 12.3% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, predictive models suggest that average home prices in Forest Park may 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 population growth and housing demand. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply evolves.
In summary, Forest Park has demonstrated a resilient housing market with stable homeownership rates despite significant increases in home values. The interplay between federal interest rates, population growth, and local economic factors has shaped these trends, with recent years showing particularly strong growth in both home prices and rental rates. As the city continues to evolve, these housing market dynamics will play a crucial role in shaping its future development and community composition.
