Loading Content...
Zip Code 44287: Rising Home Values and Ownership Rates in Cinnamon Lake, Ohio
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 44287, located in Cinnamon Lake, Ohio, presents an intriguing case study of homeownership and housing market dynamics. This area has experienced a notable increase in homeownership rates over the past decade, coupled with significant fluctuations in average home prices and rent costs. The overall trend shows a strong preference for homeownership, with average home prices generally rising despite some market volatility.
The homeownership rate in zip code 44287 has shown a steady upward trend, increasing from 82% in 2013 to 87% in 2022. This 5 percentage point increase coincides with a substantial rise in average home prices, which grew from $116,704 in 2013 to $243,074 in 2022, representing a remarkable 108% increase over this period. The most dramatic price surge occurred between 2020 and 2022, with average home prices jumping by 45.5% from $167,079 to $243,074, indicating a robust seller's market.
Federal interest rates appear to have played a significant role in homeownership trends in this area. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%, which likely contributed to the increasing homeownership rates. As interest rates remained low, more residents were able to afford mortgages, driving up both homeownership and home prices. The sharp increase in homeownership from 85% in 2019 to 87% in 2020 coincided with a drop in federal interest rates from 2.16% to 0.38%, further illustrating this relationship.
While homeownership increased, the percentage of renters in zip code 44287 decreased from 16% in 2013 to 13% in 2022. Interestingly, despite the declining renter population, average rent prices showed an overall upward trend. The average rent rose from $846 in 2013 to $899 in 2022, peaking at $945 in 2021. This trend suggests that even as more residents transitioned to homeownership, the rental market remained competitive, possibly due to limited rental inventory or increased demand for higher-quality rental properties.
In 2023, the average home price in zip code 44287 reached $256,411, marking a 5.5% increase from 2022. However, 2024 has seen a correction in the market, with average home prices decreasing to $237,412, a 7.4% drop from the previous year. This decline coincides with significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially cooling the housing market and making mortgages less affordable for some buyers.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in zip code 44287 may experience a period of stabilization or slight decline over the next five years due to higher interest rates. However, given the area's strong preference for homeownership, prices are likely to rebound once interest rates stabilize or decrease. Average rent prices are expected to continue their gradual upward trajectory, potentially reaching around $950-$1,000 by 2029, as the rental market adjusts to changes in homeownership rates and overall housing demand.
In summary, zip code 44287 has demonstrated a clear trend towards increased homeownership, with average home prices generally rising despite recent market corrections. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with low interest rates contributing to higher homeownership and rising home values. While the rental market has shrunk, it has remained resilient with gradually increasing average rents. The coming years may see a period of adjustment in the housing market, but the area's strong homeownership foundation suggests long-term stability and potential growth in both the ownership and rental sectors.
