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Rising Home Values and Strong Ownership in Zip Code 45862: Mendon's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 45862, located in Mendon, Ohio, has experienced notable shifts in homeownership rates and housing prices over the past decade. This small rural community has shown resilience and adaptability in its housing market, with significant changes in both ownership percentages and average home values.
The homeownership rate in zip code 45862 has demonstrated a strong upward trend, particularly in recent years. In 2013, the homeownership rate stood at 84%, and by 2022, it had increased to 89%. This 5 percentage point increase represents a substantial shift towards homeownership in the community. Concurrently, average home prices have shown considerable growth. In 2013, the average home price was $98,138, and by 2022, it had risen to $154,718, marking a 57.7% increase over this period. The correlation between rising homeownership rates and increasing home prices suggests a growing demand for owned properties in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 45862. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the increase in homeownership, as they made mortgage financing more accessible and affordable for potential buyers. The sharp rise in homeownership from 84% in 2017 to 90% in 2021 coincides with interest rates remaining below 1%, further supporting this relationship.
Renter percentages in zip code 45862 have inversely mirrored the homeownership trend, decreasing from 16% in 2013 to 11% in 2022. Despite this decline in the renter population, average rent prices have shown an upward trajectory. In 2013, the average rent was $639, which increased to $730 by 2022, representing a 14.2% rise. This increase in rent prices, despite a shrinking renter population, could indicate a tightening rental market with limited available units or an improvement in the quality of rental properties.
In 2023 and 2024, the housing market in zip code 45862 continues to evolve. The average home price in 2023 reached $161,843, a 4.6% increase from 2022. In 2024, it further climbed to $171,555, showing a 6% year-over-year growth. These increases occur against a backdrop of rising interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. Despite these higher rates, the continued rise in home prices suggests sustained demand in the local housing market.
Looking ahead, predictive models forecast a continuation of the upward trend in both home prices and rent for zip code 45862 over the next five years. Average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $200,000 by 2029. Rent prices are expected to grow at a slightly slower rate of 2-3% per year, potentially approaching $850 by 2029.
In summary, zip code 45862 has experienced a significant shift towards homeownership, with rising home values and increasing rent prices. The community has shown resilience in the face of changing interest rates, maintaining strong growth in the housing market. The trends of increasing homeownership, rising home prices, and growing rent costs are expected to continue, reflecting the area's evolving economic landscape and sustained demand for housing.
