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Springfield, Ohio: Rising Home Values and Shifting Ownership in a Manufacturing City
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
Springfield, Ohio, a city with a rich industrial history, is located in Clark County and covers an area of 26.17 square miles. Over the past decade, Springfield has experienced notable shifts in homeownership rates and housing costs, reflecting broader economic trends and local market dynamics.
The homeownership rate in Springfield has shown fluctuations over the years, with a general trend towards slight decline followed by a recent uptick. In 2013, homeowners occupied 57% of housing units. This percentage dipped to its lowest point of 53% in 2018 before rebounding to 57% by 2022. Concurrently, average home prices have demonstrated a steady upward trajectory. In 2013, the average home price was $83,545, which has grown significantly to $151,698 by 2022, representing an impressive 81.6% increase over this period.
The relationship between federal interest rates and homeownership rates in Springfield shows some correlation. As interest rates remained historically low from 2013 to 2016, hovering around 0.1%, homeownership rates experienced a slight decline. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates stabilized and then increased. This counterintuitive trend may suggest that other local economic factors played a more significant role in homeownership decisions than interest rates alone.
Renter occupancy in Springfield has mirrored the homeownership trends, rising from 43% in 2013 to a peak of 47% in 2018, before decreasing to 43% in 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $788, which increased to $836 by 2021, representing a 6.1% rise. Interestingly, there was a slight decrease to $800 in 2022, possibly reflecting local economic conditions or housing market adjustments.
The years 2023 and 2024 have seen continued growth in average home prices in Springfield. In 2023, the average home price reached $162,017, a 6.8% increase from 2022. The trend continued into 2024, with prices rising to $171,575, marking a further 5.9% increase. Notably, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends.
Looking ahead, predictive models suggest that both average home prices and rent prices in Springfield are likely to continue their upward trajectory over the next five years. Home prices could potentially reach around $200,000 by 2029, assuming a continuation of the current growth rate. Rent prices might see more moderate increases, potentially approaching $900 per month by 2029, barring any significant economic shifts or local policy changes.
In summary, Springfield's housing market has shown resilience and growth over the past decade, with rising home values and a recent uptick in homeownership rates. The interplay between interest rates, homeownership, and housing costs reflects a complex local economy adapting to broader national trends. As the city moves forward, these housing market dynamics will likely continue to play a crucial role in shaping Springfield's economic landscape and community development.
