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Sullivan, Ohio: Resilient Home Values and High Ownership Rates Amid Interest Rate Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Sullivan, located in Ohio, is a small community that has experienced notable changes in its housing market over the past decade. The city has maintained a consistently high rate of homeownership, while average home prices have shown a steady upward trend. This analysis will explore the relationship between ownership rates, housing prices, and rental market dynamics in Sullivan.
The homeownership rate in Sullivan has remained remarkably high, fluctuating between 89% and 97% from 2013 to 2022. This strong preference for homeownership coincides with a significant increase in average home prices. In 2010, the average home price was $131,837, which steadily rose to $250,669 by 2022, representing a substantial 90% increase over 12 years. The most dramatic jump occurred between 2020 and 2021, with average home prices surging from $187,534 to $225,517, a 20% increase in just one year.
Federal interest rates have played a role in shaping homeownership trends in Sullivan. The period from 2010 to 2015 saw historically low interest rates, ranging from 0.09% to 0.18%. During this time, homeownership rates in Sullivan remained high, likely due to the affordable financing options available. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates in Sullivan showed slight fluctuations but remained above 90%, demonstrating the community's strong preference for owning homes despite changing economic conditions.
The rental market in Sullivan has been relatively small, with renter-occupied units accounting for only 3% to 11% of housing between 2013 and 2022. The percentage of renters reached its lowest point in 2017 at 3% and has since increased slightly to 7% in 2022. Average rent prices have only been available for recent years, with data showing $2,250 per month in both 2021 and 2022. This stability in rent prices, coupled with the low percentage of renters, suggests a limited but consistent rental market in the area.
As of 2024, the average home price in Sullivan has reached $273,277, continuing the upward trend observed in previous years. This represents a 9% increase from the 2022 average of $250,669. The federal interest rate for 2024 stands at 5.33%, a significant rise from the 1.68% seen in 2022. This increase in interest rates may impact future homeownership rates and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in Sullivan will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $325,000 to $350,000, assuming a conservative annual growth rate of 3-5%. Rent prices are also expected to increase, potentially reaching around $2,500 to $2,700 per month by 2029, based on a similar growth rate assumption.
In summary, Sullivan has maintained a strong homeownership culture despite rising home prices. The community has seen significant appreciation in property values, with average home prices nearly doubling from 2010 to 2022. While the rental market remains small, it has shown signs of slight growth in recent years. The interplay between federal interest rates, home prices, and ownership rates highlights the resilience of Sullivan's housing market, with residents continuing to prioritize homeownership even in the face of economic changes.
