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Zip Code 44904: Resilient Homeownership Amid Rising Home Values in Lexington, 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
Zip code 44904, located in Lexington, Ohio, presents an intriguing landscape of homeownership and housing market dynamics. This suburban area has experienced notable fluctuations in its ownership percentages and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 44904 has shown a slight overall decline from 2013 to 2022, with some fluctuations in between. In 2013, the ownership rate stood at 76%, gradually decreasing to 71% by 2017. However, there was a rebound in recent years, with the rate climbing back to 75% in 2022. Concurrently, average home prices in the area have seen a substantial increase. In 2013, the average home price was $122,092, which steadily rose to $226,206 by 2022, representing an impressive 85% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates experienced a slight decline from 76% to 71%. This counterintuitive trend might be attributed to other local economic factors outweighing the impact of low interest rates. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates stabilized and even increased slightly to 75%, possibly reflecting improved economic conditions and increased buyer confidence.
Renter percentages in zip code 44904 have shown an inverse relationship to homeownership rates, naturally. The renter population increased from 24% in 2013 to a peak of 29% in 2017, before declining back to 25% by 2022. Interestingly, average rent prices have not consistently followed this trend. In 2013, the average rent was $864, which decreased to $745 by 2017 despite the increase in renter percentage. By 2022, the average rent had risen slightly to $764, still below the 2013 levels, even as the renter percentage returned to 25%.
Looking at more recent data, the average home price in zip code 44904 continued its upward trajectory, reaching $233,559 in 2023 and further increasing to $243,199 in 2024. This represents a 7.5% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 44904 will continue to rise, potentially reaching around $280,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and recent market dynamics. For rent prices, the forecast suggests a more modest increase, potentially reaching an average of $820 to $850 per month by 2029, considering the historical fluctuations and recent stabilization in rent prices.
In summary, zip code 44904 has demonstrated resilience in its housing market, with steadily increasing home values despite fluctuations in homeownership rates. The area has maintained a strong majority of owner-occupied homes, even in the face of rising interest rates. The rental market has shown more volatility in terms of occupancy rates, but with relatively stable average rent prices. As the area moves forward, it appears poised for continued growth in property values, while maintaining a balance between ownership and rental options for its residents.
