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Zip Code 43608: Toledo's Shifting Housing Market and Rising Home Values
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 43608, located in Toledo, Ohio, has experienced significant demographic and housing market shifts over the past decade. This area has seen a notable transition from a predominantly owner-occupied community to one with a more balanced mix of owners and renters, accompanied by fluctuations in average home prices and rent rates.
The homeownership rate in zip code 43608 has shown a steady decline from 2013 to 2022. In 2013, 58% of housing units were owner-occupied. This percentage decreased gradually, reaching 48% by 2022. Conversely, the average home prices in the area have demonstrated a general upward trend. In 2013, the average home price was $19,331. Despite some fluctuations, prices rose significantly, reaching $42,852 by 2022, marking a 121.7% increase over this period.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 58%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, falling to 48% by 2022. This trend aligns with the general principle that higher interest rates can make homeownership less affordable, potentially contributing to the shift towards renting in the area.
As homeownership decreased, the percentage of renters in zip code 43608 increased from 42% in 2013 to 52% in 2022. During this period, average rent prices also showed an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $699, which increased to $741 by 2021 before slightly decreasing to $721 in 2022. It's worth noting that despite the increase in the renter population, the overall population of the zip code decreased from 15,993 in 2013 to 14,827 in 2022, suggesting that other factors beyond housing market dynamics may be influencing local demographics.
Looking at more recent data, the average home price in zip code 43608 decreased to $38,944 in 2023 but rebounded to $42,205 in 2024. This rebound occurred despite a significant increase in federal interest rates, which rose from 5.02% in 2023 to 5.33% in 2024. This suggests that local market factors may be offsetting the potential dampening effect of higher interest rates on home prices in this area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 43608 will continue to show moderate growth, potentially reaching around $50,000 by 2029. This projection is based on the historical upward trend and recent price resilience in the face of higher interest rates. For rent prices, we expect a more modest increase, potentially reaching an average of around $775 per month by 2029, reflecting the area's gradual rent appreciation over the past decade.
In summary, zip code 43608 has undergone a significant shift from a predominantly owner-occupied area to one with a more balanced housing tenure mix. Despite declining homeownership rates, average home prices have shown substantial appreciation. The rental market has expanded, with both the proportion of renters and average rent prices increasing over time. These trends, coupled with recent price resilience and projected growth, suggest a dynamic and evolving housing market in this Toledo neighborhood.
