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Zip Code 43162: Rising Home Values and Ownership in West Jefferson, 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 43162, located in West Jefferson, Ohio, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing homeownership, rising average home prices, and fluctuating average rent prices, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 43162 has shown a notable increase from 74% in 2013 to 81% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $111,166, which steadily climbed to $227,889 by 2022, representing a 105% increase over this period. The most significant annual increase occurred between 2020 and 2021, when average home prices jumped from $175,156 to $201,818, a 15.2% rise in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1-0.4%. During this time, homeownership rates remained relatively stable, between 74-76%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 73-74%. However, the dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a sharp increase in homeownership, reaching 77% and 79% respectively. This trend supports the notion that lower interest rates generally encourage homeownership due to more affordable financing options.
The renter percentage in zip code 43162 has inversely mirrored the homeownership trend, decreasing from 25% in 2013 to 19% in 2022. Interestingly, average rent prices have shown more volatility than a clear upward or downward trend. In 2013, the average rent was $915, which fluctuated over the years, reaching a peak of $1,077 in 2021 before dropping to $954 in 2022. This volatility in rent prices, coupled with the decreasing renter percentage, suggests a shift towards homeownership in the area, possibly driven by the rising home values and low interest rates making homeownership more attractive.
In 2023 and 2024, the average home prices in zip code 43162 continued their upward trajectory, reaching $241,852 in 2023 and $250,935 in 2024. This represents a 6.1% increase from 2022 to 2023 and a further 3.8% increase from 2023 to 2024. Notably, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices have continued to appreciate, suggesting strong demand in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 43162 to continue rising, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $300,000 to $320,000, assuming a moderated annual growth rate of 3-5%. Average rent prices are likely to stabilize and show modest increases, potentially reaching $1,100 to $1,200 per month by 2029, reflecting the area's growing desirability and economic conditions.
In summary, zip code 43162 has demonstrated a clear trend towards increased homeownership and rising home values over the past decade. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with low interest rates generally corresponding to higher homeownership rates. The area has shown resilience in its housing market, with continued price appreciation even in the face of recent interest rate hikes. Looking forward, we can expect a continuation of these trends, with moderate growth in both home prices and rent, reflecting the area's evolving real estate landscape and economic fundamentals.
