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South Salem: Rising Home Values and Declining Ownership Rates
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
South Salem, located in Ohio, is a small community that has experienced significant changes in its housing market over the past decade. The city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics. The relationship between homeownership percentages and average home prices in South Salem reveals an interesting pattern. In 2013, the homeownership rate was at a peak of 93%, with average home prices at $99,509. As average home prices steadily increased, reaching $167,861 in 2022, the homeownership rate declined to 72%. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in South Salem. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained stable at 93%. However, as interest rates began to rise from 2017 onwards, homeownership rates started to decline. By 2022, with interest rates at 1.68%, the homeownership rate had dropped to 72%, indicating that higher borrowing costs may have deterred potential buyers.
The renter population in South Salem has grown considerably, with the percentage of renters increasing from 7% in 2013 to 28% in 2022. This shift coincided with a rise in average rent prices, which increased from $695 in 2013 to $800 in 2022. The population fluctuations during this period, peaking at 2,009 residents in 2017 before declining to 1,383 in 2022, likely influenced the rental market dynamics, with increased demand potentially driving up rent prices.
In 2023 and 2024, South Salem experienced further changes in its housing market. Average home prices continued to rise, reaching $172,703 in 2023 and $180,760 in 2024. Concurrently, federal interest rates increased significantly, hitting 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Looking ahead, predictive models suggest that average home prices in South Salem may continue to rise over the next five years, potentially reaching around $200,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $900 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, South Salem has experienced a notable shift in its housing landscape, with declining homeownership rates coinciding with rising home prices and increasing renter populations. The interplay between federal interest rates, population changes, and local economic factors has shaped these trends. As the community moves forward, it will likely continue to see evolving dynamics in its housing market, with potential impacts on affordability and community composition.
