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Salem, Ohio: Rising Home Values Amidst Stable Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Salem, Ohio, a charming city located in Columbiana County, has experienced notable shifts in its housing market over the past decade. Known for its rich history and small-town charm, Salem has seen fluctuations in homeownership rates, average home prices, and average rent prices that reflect broader economic trends and local market dynamics.
The homeownership rate in Salem has remained relatively stable, hovering around 66-68% between 2013 and 2022. This stability suggests a strong preference for homeownership among Salem residents. Concurrently, average home prices have shown a steady upward trajectory. In 2013, the average home price in Salem was $98,825, which increased to $158,536 by 2022, representing a significant 60.4% growth over this period. This trend indicates a robust appreciation in property values, potentially benefiting homeowners but also raising concerns about affordability for new buyers.
The relationship between federal interest rates and homeownership rates in Salem presents an interesting dynamic. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), homeownership rates remained stable at around 65-67%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership to 67% by 2021. This suggests that while lower interest rates generally encourage homeownership, other local factors may have influenced Salem's housing market.
Renter percentages in Salem have fluctuated slightly, ranging from 32% to 34% between 2013 and 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $635, which increased to $718 by 2015, then fluctuated before reaching $723 in 2022. Notably, there was a significant jump to $803 in 2021, possibly influenced by broader economic factors or local market conditions. The relationship between renter percentages and average rent prices doesn't show a strong correlation, suggesting that other factors, such as local employment opportunities or housing supply, may play a more significant role in determining rental market dynamics.
In 2023 and 2024, Salem's housing market continued its upward trajectory. The average home price reached $165,832 in 2023 and further increased to $172,841 in 2024, representing a 4.5% and 4.2% year-over-year growth, respectively. This growth occurred despite rising federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, indicating a resilient local housing market.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in Salem's housing market over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $200,000 by 2029. Average rent prices may also see moderate increases, possibly reaching $850-$900 per month in the same timeframe. However, these projections assume relatively stable economic conditions and no major disruptions to the local or national economy.
In summary, Salem's housing market has demonstrated resilience and growth over the past decade. The stability in homeownership rates, coupled with significant appreciation in average home prices, suggests a strong and desirable local real estate market. While rent prices have shown some volatility, the overall trend points to a gradual increase. The city's ability to maintain growth in home values even in the face of rising interest rates indicates a robust local economy and continued demand for housing in Salem.
