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ZIP Code 43146: Derby's Rising Home Values Amidst High 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
Zip code 43146, located in Derby, Ohio, has experienced significant changes in homeownership rates and property values over the past decade. This area has maintained a consistently high rate of homeownership, with a slight upward trend in recent years, while also seeing substantial growth in average home prices. The homeownership rate in zip code 43146 has shown a modest increase from 85% in 2013 to 88% in 2022. This upward trend in homeownership coincides with a dramatic rise in average home prices. In 2013, the average home price was $150,077, which steadily increased to $311,507 by 2022, representing a remarkable 107.6% increase over this period. This substantial growth in property values may have incentivized more residents to invest in homeownership, despite the potential challenges of affordability for new buyers.
Federal interest rates have played a significant role in shaping homeownership trends in this area. From 2013 to 2016, interest rates remained exceptionally low, hovering around 0.1% to 0.4%. During this period, homeownership rates in zip code 43146 fluctuated slightly but remained high, ranging from 85% to 87%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates continued to climb, reaching 88% in 2022. This suggests that despite rising interest rates, other factors such as job stability, local economic conditions, or the desire for homeownership in this specific area may have outweighed the impact of higher borrowing costs.
The rental market in zip code 43146 has shown interesting trends in relation to the homeownership rates. The percentage of renters decreased slightly from 13% in 2013 to 12% in 2022. Despite this decrease, average rent prices have generally trended upward. In 2013, the average rent was $973, which increased to $1,000 by 2022, with some fluctuations in between. The highest average rent was recorded in 2018 at $1,081. The slight decrease in the renter population, coupled with the overall increase in average rent prices, may indicate a tightening rental market with potentially higher-quality or more desirable rental properties becoming available.
Looking at the most recent data, in 2023, the average home price in zip code 43146 reached $327,701, showing continued growth from the previous year. This trend persisted into 2024, with average home prices further increasing to $341,650. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make borrowing more expensive, home prices have continued to appreciate, suggesting strong demand and potentially limited housing supply in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 43146 will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. We project that by 2029, average home prices could reach approximately $400,000 to $425,000, assuming a more moderate annual growth rate of 3-4%. For average rent prices, we expect a continued upward trend, potentially reaching $1,200 to $1,300 per month by 2029, factoring in historical growth patterns and the area's increasing property values.
In summary, zip code 43146 has demonstrated robust homeownership rates and significant property value appreciation over the past decade. The area has shown resilience in maintaining high homeownership levels even as average home prices and interest rates have increased. The rental market, while smaller, has also seen general price increases despite a slight decrease in the renter population. These trends suggest a strong and desirable housing market in this Ohio community, with potential for continued growth in both home values and rental prices in the coming years.
