Zip Code 44140: Stable Homeownership and Rising Home Values in Bay Village, Ohio
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Zip code 44140, located in Bay Village, Ohio, is a suburban area known for its high homeownership rates and steady property values. Over the past decade, this area has maintained a strong preference for owner-occupied housing, with average home prices showing a consistent upward trend and average rent prices experiencing moderate fluctuations.
The homeownership rate in zip code 44140 has remained remarkably stable, hovering around 92% from 2013 to 2022. This high rate of ownership coincides with a steady increase in average home prices. In 2013, the average home price was $203,694, which rose to $344,092 by 2022, representing a substantial 68.9% increase over nine years. This trend suggests a strong correlation between sustained high homeownership rates and appreciating property values in the area.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with the period when homeownership rates in zip code 44140 were consistently high at 91-92%. As interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, homeownership rates remained stable, indicating the area's resilience to moderate interest rate increases.
The rental market in zip code 44140, while smaller, has shown interesting trends. The percentage of renters has fluctuated slightly, ranging from 7% to 9% between 2013 and 2022. Average rent prices have seen more volatility compared to home prices. In 2013, the average rent was $1,151, which increased to $1,402 by 2019, representing a 21.8% rise. However, there was a notable decrease to $1,274 in 2020, followed by an increase to $1,355 in 2021, and then another decrease to $1,284 in 2022. These fluctuations in rent prices do not appear to have significantly impacted the overall low percentage of renters in the area.
The years 2023 and 2024 have seen continued growth in average home prices in zip code 44140. The average home price reached $366,194 in 2023 and further increased to $382,378 in 2024, representing a 6.4% and 4.4% year-over-year growth, respectively. This growth has occurred despite the sharp rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, indicating the strong demand for housing in this area.
Looking ahead, based on historical trends and current market conditions, we can predict continued growth in average home prices for zip code 44140 over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average home prices could potentially reach around $450,000 by 2029. Average rent prices are likely to continue their fluctuating trend but may stabilize around $1,400-$1,500 per month, assuming no major economic shifts.
In summary, zip code 44140 demonstrates a robust housing market characterized by high homeownership rates and steadily increasing property values. The area has shown resilience to interest rate fluctuations, maintaining strong homeownership levels even as rates have risen. While the rental market is smaller, it has experienced more volatility in pricing. The continued rise in home prices, even in the face of higher interest rates, suggests ongoing demand for housing in this desirable suburban location.
