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Zip Code 43221: Rising Home Values and Shifting Ownership Trends in Upper Arlington, 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 43221, located in Upper Arlington, Ohio, exhibits a dynamic housing market characterized by rising home values and evolving ownership patterns. This area has experienced significant changes in its real estate landscape over the past decade, with homeownership rates remaining relatively high but showing a slight decline in recent years. Concurrently, average home prices have seen substantial growth, and average rent prices have steadily increased, reflecting the area's desirability and changing economic conditions.
The homeownership rate in zip code 43221 has experienced a gradual decline from 74% in 2014 to 69% in 2022. During this same period, average home prices have risen significantly, from $238,871 in 2014 to $409,353 in 2022, representing a 71.4% increase. This inverse relationship suggests that rising home prices may be contributing to a slight shift towards renting in the area. Despite this trend, the homeownership rate remains relatively high, indicating that Upper Arlington continues to be an attractive location for homeowners.
Federal interest rates have played a role in homeownership trends in zip code 43221. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained stable at around 73-74%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a gradual decrease in homeownership rates to 69%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 43221 has increased from 26% in 2014 to 31% in 2022. Concurrently, average rent prices have risen from $1,216 in 2014 to $1,396 in 2022, an increase of 14.8%. This growth in both renter percentage and rent prices suggests a strong demand for rental properties in the area. The population has also grown from 32,601 in 2014 to 34,589 in 2022, which may have contributed to the increased demand for rental units and subsequent rise in rent prices.
In 2023 and 2024, average home prices in zip code 43221 continued their upward trajectory, reaching $428,487 in 2023 and $443,622 in 2024. This represents a 4.7% increase from 2022 to 2023 and a further 3.5% increase from 2023 to 2024. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 43221 will continue to rise, potentially reaching around $525,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,600 per month within the same timeframe. These projections are based on historical trends and assume relatively stable economic conditions.
In conclusion, zip code 43221 in Upper Arlington, Ohio, has demonstrated a dynamic housing market over the past decade. The most important findings include a gradual shift towards renting, with homeownership rates decreasing from 74% to 69% between 2014 and 2022. Despite this trend, average home prices have shown remarkable growth, increasing by over 71% during the same period. The rental market has also strengthened, with both the percentage of renters and average rent prices increasing. Looking ahead, we expect continued growth in both home prices and rent prices, albeit potentially at a more moderate pace due to rising interest rates. These trends reflect the area's ongoing desirability and evolving demographic composition.
