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Zip Code 43359: Rising Home Values and Ownership in Wharton, 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 43359, located in Wharton, Ohio, presents an interesting case study of homeownership and rental trends in a small, rural community. Over the past decade, this area has experienced notable fluctuations in its homeownership rates and property values, reflecting broader economic shifts and local demographic changes.
The homeownership rate in zip code 43359 has shown a general upward trend, increasing from 77% in 2013 to 82% in 2022. This rise in homeownership coincided with a significant increase in average home prices. In 2012, the average home price was $78,397, and by 2022, it had risen to $143,149, representing an impressive 82.6% increase over a decade. This substantial growth in property values may have incentivized residents to invest in homeownership, viewing it as a potentially lucrative long-term investment.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. As interest rates remained historically low between 2013 and 2021, ranging from 0.08% to 1.83%, the homeownership rate in the area generally increased. This aligns with the well-established trend that lower interest rates tend to encourage homeownership by making mortgages more affordable. The peak homeownership rate of 87% in 2017 coincided with a relatively low federal interest rate of 1%.
Conversely, the renter population in zip code 43359 has experienced a decline, dropping from 23% in 2013 to 18% in 2022. Despite this decrease in the proportion of renters, average rent prices have shown considerable volatility. The average rent rose from $587 in 2013 to a peak of $803 in 2016, before declining to $630 in 2022. This fluctuation in rent prices, coupled with the increasing homeownership rate, suggests that some former renters may have transitioned to homeownership, potentially due to the attractive combination of rising property values and low interest rates.
Looking at the most recent data, the average home price in zip code 43359 continued to rise, reaching $145,822 in 2023 and $155,475 in 2024. This represents a 7.3% increase from 2022 to 2023 and a further 6.6% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates 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 43359 will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. We project that by 2029, the average home price could reach approximately $180,000 to $190,000. For rent prices, the forecast suggests a moderate increase, potentially reaching an average of $700 to $750 per month by 2029, assuming stable economic conditions and continued population growth in the area.
In summary, zip code 43359 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The interplay between low interest rates, increasing home prices, and fluctuating rent costs has likely contributed to the shift from renting to owning. As interest rates have recently increased, it will be crucial to monitor how this affects homeownership rates and property values in the coming years. The community's ability to maintain its growth in property values while balancing affordability for both homeowners and renters will be key to its continued development and stability.
