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Zip Code 43116: Rising Home Values and Ownership Rates in Commercial Point, Ohio
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
Zip code 43116, located in Commercial Point, Ohio, has experienced significant demographic and housing market changes over the past decade. This area has seen a notable increase in homeownership rates, coupled with fluctuating average home prices and rent costs. The community has transformed from a predominantly renter-occupied area to one with an overwhelmingly high percentage of homeowners, while simultaneously experiencing substantial growth in average home values.
The homeownership rate in zip code 43116 has shown a remarkable upward trend, rising from 86% in 2017 to an impressive 97% in 2022. This substantial increase in homeownership coincides with a significant rise in average home prices. In 2017, the average home price was $232,363, which steadily climbed to $377,259 by 2022, representing a 62.4% increase over five years. This positive correlation suggests that as home values appreciated, more residents were motivated to invest in homeownership, possibly viewing it as a lucrative long-term investment.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2017 to 2020 saw relatively low interest rates, ranging from 1% to 2.16%, which likely contributed to the increasing homeownership rates during this time. The exceptionally low rate of 0.08% in 2021 coincided with a surge in homeownership to 93%, as more residents took advantage of favorable borrowing conditions. Even as interest rates began to rise in 2022 to 1.68%, the homeownership rate continued to increase, reaching 97%, suggesting a strong local desire for homeownership despite slightly higher borrowing costs.
The renter population in zip code 43116 has decreased significantly, from 14% in 2017 to just 3% in 2022. Interestingly, average rent prices have fluctuated during this period, peaking at $1,233 in 2018 before declining to $1,124 in 2022. This decrease in average rent, coupled with the declining renter population, suggests that the rental market in the area has become less competitive, possibly due to the strong shift towards homeownership. The population growth from 387 in 2017 to 520 in 2022 indicates that new residents are primarily entering the market as homeowners rather than renters.
Looking at the most recent data, the average home price in zip code 43116 reached $386,195 in 2023 and further increased to $403,651 in 2024. This represents a 4.5% year-over-year increase, indicating continued strong growth in the local housing market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the local housing market appears to remain robust, suggesting strong underlying demand for homes in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 43116 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $475,000 to $500,000, assuming a more moderate annual growth rate of 3-4%. Average rent prices are expected to stabilize or increase slightly, potentially reaching $1,300 to $1,400 per month by 2029, as the rental market adjusts to the predominantly owner-occupied landscape.
The most significant trends observed in zip code 43116 include the dramatic increase in homeownership rates, substantial appreciation of average home values, and a corresponding decline in the renter population. The area has transformed into a stronghold of homeownership, with property values showing resilient growth even in the face of rising interest rates. These trends suggest a community that highly values homeownership and has experienced significant economic development. Looking forward, while the pace of growth may moderate, the area is poised for continued appreciation in home values and a stable, albeit small, rental market.
