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Zip Code 43517: Edgerton's Rising Home Values Amid Declining Ownership
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 43517, located in Edgerton, Ohio, presents an interesting case study of homeownership and housing market trends in a small Midwestern community. Over the past decade, this area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic shifts and local dynamics.
The homeownership rate in zip code 43517 has shown a slight decline over the years, moving from 86% in 2013 to 81% in 2022. Despite this decrease, the area maintains a high rate of owner-occupied housing compared to national averages. Concurrently, average home prices have seen a significant increase. In 2013, the average home price was $91,889, which steadily rose to $163,919 by 2022, representing a 78.4% increase over this period. This upward trend in home prices, coupled with a slight decrease in homeownership, suggests that while property values are appreciating, some residents may be finding it more challenging to enter the housing market.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable at around 84-86%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% by 2022, we observe a corresponding decline in homeownership rates to 81%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The rental market in zip code 43517 has shown interesting trends as well. The percentage of renters increased from 14% in 2013 to 19% in 2022. During this period, average rent prices fluctuated but showed an overall upward trend. In 2013, the average rent was $631, which increased to $678 by 2022, representing a 7.4% increase. The rise in both renter percentage and average rent prices suggests growing demand for rental properties in the area, possibly due to factors such as increased housing costs or changing demographics.
Looking at the most recent data, average home prices in zip code 43517 continued to rise, reaching $170,138 in 2023 and $176,206 in 2024. This represents a further 7.5% increase from 2022 to 2024. Interestingly, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing market dynamics in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 43517 will continue to rise, potentially reaching around $200,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and assumes similar economic conditions persist. For average rent prices, we predict a more moderate increase, potentially reaching around $750 by 2029, reflecting the slower growth rate observed in rental prices compared to home values.
In summary, zip code 43517 has experienced a gradual shift in its housing landscape over the past decade. While homeownership rates have slightly declined, they remain high compared to national averages. The area has seen substantial appreciation in home values, which could be both a boon for current homeowners and a challenge for potential buyers. The rental market has grown, both in terms of the percentage of renters and average rent prices, indicating changing housing preferences or necessities in the community. As interest rates continue to rise, it will be crucial to monitor how these trends evolve and impact the local housing market in the coming years.
