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Zip Code 44040: Stable Homeownership and Rising Values in Gates Mills, 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
Gates Mills, located in zip code 44040 in Ohio, is a predominantly owner-occupied community with consistently high homeownership rates. This affluent suburb has experienced notable fluctuations in its average home prices and average rent prices over the years, reflecting broader economic trends and local market dynamics.
The homeownership rate in Gates Mills has remained remarkably stable, hovering around 94-95% throughout the 2013-2022 period. This high rate of owner-occupancy coincides with a steady increase in average home prices. In 2013, the average home price was $417,019, and it rose consistently over the years, reaching $608,963 in 2022. This represents a significant 46% increase in average home values over a decade. The stability in homeownership rates despite rising prices suggests a strong, established community with residents able to weather market changes.
Federal interest rates have played a role in maintaining high homeownership rates in Gates Mills. From 2013 to 2016, interest rates remained below 0.5%, which likely contributed to the sustained high levels of homeownership. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in the area showed remarkable resilience, only dropping slightly from 95% in 2013 to 94% in 2022. This suggests that other factors, such as the desirability of the area and the financial stability of its residents, may have offset the potential negative impact of rising interest rates on homeownership.
The renter population in Gates Mills, while small, has seen some fluctuations. The percentage of renters increased slightly from 5% in 2013 to 7% in 2020, before returning to 6% in 2022. Average rent prices have shown volatility over this period. In 2013, the average rent was $1,559, which peaked at $2,566 in 2015, before settling at $1,971 in 2022. This represents a 26% increase in average rent from 2013 to 2022, despite some intervening fluctuations. The relatively small renter population and the high variability in rent prices suggest a limited and potentially competitive rental market in the area.
In 2023 and 2024, Gates Mills continued to see growth in average home prices. The average home price reached $628,731 in 2023 and further increased to $659,699 in 2024, representing a 5% year-over-year increase. This growth occurred despite high federal interest rates of 5.02% in 2023 and 5.33% in 2024, indicating strong demand and value appreciation in the local housing market.
Looking ahead, predictive models suggest that the upward trend in average home prices in Gates Mills is likely to continue over the next five years. Based on historical data and current market conditions, average home prices could potentially reach the $750,000 to $800,000 range by 2029. Average rent prices, while more volatile, may also see an upward trend, potentially reaching around $2,300 to $2,500 per month in the same timeframe.
In summary, Gates Mills (zip code 44040) demonstrates a robust and stable housing market characterized by high homeownership rates and steadily increasing average home values. The area has shown resilience to rising interest rates, maintaining its appeal to homeowners. While the rental market is small, it has seen significant price fluctuations, reflecting the limited supply of rental properties. The continued growth in home values, even in the face of high interest rates, suggests a strong local economy and sustained demand for housing in this desirable Ohio community.
