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Zip Code 44118: Rising Home Values and Stable Ownership in Cleveland Heights' Diverse Urban Area
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 44118, located in Cleveland Heights, Ohio, is characterized by its historical architecture and vibrant community. This urban area has experienced notable changes in its housing market over the past decade, reflecting broader economic trends and local dynamics. The homeownership rate in zip code 44118 has shown resilience, with minor fluctuations between 2013 and 2022. Starting at 63% in 2013, it dipped to 60% in 2018 and 2019, before returning to 63% in 2022. This stability in homeownership occurred alongside significant increases in average home prices. From 2013 to 2022, the average home price in the area rose from $119,127 to $207,321, marking a substantial 74% increase over nine years.
The interplay between federal interest rates and homeownership rates in zip code 44118 demonstrates some correlation. During the period of historically low interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates increased from 61% to 63%. This trend aligns with the general understanding that lower interest rates tend to encourage homeownership by making financing more affordable.
Renter percentages in zip code 44118 have shown slight variations, increasing from 37% in 2013 to 40% in 2019, before reverting to 37% in 2022. Average rent prices also experienced an upward trend, rising from $1,145 in 2013 to $1,213 in 2022, a 6% increase over nine years. This growth in rent prices, while notable, was less dramatic than the rise in average home prices during the same period.
In 2023 and 2024, average home prices in zip code 44118 continued their upward trajectory, reaching $217,354 in 2023 and $228,785 in 2024. This represents a further 10.4% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability in the area.
Predictive models suggest that average home prices in zip code 44118 may continue to rise over the next five years, potentially reaching around $260,000 by 2029. Average rent prices are also expected to increase, albeit at a slower rate, potentially reaching approximately $1,350 by 2029.
In conclusion, zip code 44118 has maintained stable homeownership rates despite significant increases in average home prices. The area has experienced substantial appreciation in property values, outpacing the growth in rent prices. The relationship between interest rates, home prices, and homeownership rates highlights the complex dynamics of the local real estate market. As the area continues to evolve, monitoring these trends will be crucial for understanding their impact on the community's housing landscape.
