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Silverton: Home Values Double Amidst Shift to Renting
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
Silverton, Ohio, is a small suburban community located in Hamilton County. With a population of 4,999 in 2022 and covering just 1.11 square miles, this densely populated village has experienced notable shifts in its housing market over the past decade. The ownership percentage has shown a declining trend, while average home prices and average rent prices have generally increased.
The homeownership rate in Silverton has steadily decreased from 58% in 2013 to 49% in 2022. During this same period, average home prices have shown a significant upward trend. In 2013, the average home price was $104,206, and by 2022, it had increased to $214,703, representing a 106% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in Silverton. From 2013 to 2016, interest rates remained low, hovering between 0.09% and 0.40%. During this period, homeownership rates remained relatively stable, ranging from 56% to 59%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates declined from 56% to 50%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates declined, the percentage of renters in Silverton increased from 42% in 2013 to 51% in 2022. Concurrently, average rent prices showed an overall upward trend, rising from $702 in 2013 to $803 in 2022, an increase of 14.4%. The rise in rental rates, while not as dramatic as the increase in home prices, still outpaced inflation during this period. The growing renter population may have contributed to the upward pressure on rental prices.
In 2023, the average home price in Silverton reached $229,679, continuing the upward trend observed in previous years. The federal interest rate also saw a significant increase to 5.02% in 2023. Moving into 2024, the average home price further escalated to $247,111, while the federal interest rate slightly increased to 5.33%. These higher interest rates may continue to impact homeownership trends in the village.
Looking ahead, based on the observed trends, it's projected that average home prices in Silverton will continue to rise over the next five years, potentially reaching around $300,000 by 2029. Average rent prices are also expected to increase, albeit at a slower rate, potentially approaching $950 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Silverton has experienced a shift towards a more renter-dominated housing market over the past decade, with declining homeownership rates coinciding with substantial increases in average home prices. The interplay between federal interest rates, housing affordability, and demographic changes has shaped these trends, resulting in a dynamic and evolving housing landscape in this small Ohio community.
