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Zip Code 44026: Rising Home Values and High Ownership Rates Amid Volatile Rent Prices
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 44026, located in Chesterland, Ohio, presents an interesting case study of suburban housing dynamics. This area has experienced notable shifts in homeownership rates and property values over the past decade, reflecting broader economic trends and local market conditions. The homeownership rate in zip code 44026 has shown a slight decline from 2013 to 2022, moving from 95% to 91%. This change coincides with a significant increase in average home prices, which rose from $202,561 in 2013 to $322,184 in 2022, representing a 59% increase over nine years. The trend suggests that rising home prices may have made homeownership less attainable for some residents, leading to a gradual shift towards renting.
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, ranging from 0.11% to 0.40%, which likely contributed to the relatively stable homeownership rates during this time, hovering around 93-94%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, we observe a corresponding decline in homeownership rates to 91%, suggesting that higher borrowing costs may have impacted home buying decisions.
The renter population in zip code 44026 has seen a corresponding increase, rising from 4% in 2013 to 9% in 2022. This doubling of the renter percentage aligns with fluctuations in average rent prices. In 2013, the average rent was $1,001, which increased to $1,125 by 2015. However, rent prices have shown volatility in recent years, dropping to $877 in 2020 before rising sharply to $1,307 in 2021, and then decreasing again to $823 in 2022. This volatility in rent prices, coupled with the increasing renter population, suggests a dynamic rental market responding to changing economic conditions and housing preferences.
Looking at the most recent data, average home prices in zip code 44026 continued to rise, reaching $336,122 in 2023 and $344,689 in 2024. This represents a further 7% increase from 2022 to 2024, indicating sustained growth in property values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and mortgage affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 44026 to continue their upward trajectory, potentially reaching around $400,000 by 2029. This projection is based on the consistent growth pattern observed over the past decade. For rent prices, the forecast is more uncertain due to recent volatility, but a moderate upward trend is expected, potentially reaching an average of $1,500 per month by 2029, assuming economic stability and continued demand for rental properties in the area.
In summary, zip code 44026 has experienced a gradual shift from a predominantly owner-occupied area to one with a growing renter population, driven by rising home prices and changing economic conditions. The interplay between federal interest rates, home values, and rental market dynamics has shaped the housing landscape in this Ohio community, with trends pointing towards continued growth in property values and a potentially more diverse mix of housing tenures in the coming years.
