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Zip Code 45005: Rising Home Values and Stable Ownership in Franklin, 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 45005, located in Franklin, Ohio, presents an intriguing case study of homeownership trends and housing market dynamics. This area has experienced notable shifts in ownership percentages and housing prices over the past decade, reflecting broader economic changes and local market conditions.
The homeownership rate in zip code 45005 has shown a slight upward trend in recent years. In 2013, the area had a 68% homeownership rate, which increased to 71% by 2022. This growth in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $120,726, and by 2022, it had risen to $230,567, representing a significant 91% increase over this period. This trend suggests that despite rising home prices, more residents in the area were able to become homeowners, possibly due to favorable economic conditions or local factors encouraging homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 45005. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%. During this time, homeownership rates remained relatively stable around 68-69%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we paradoxically saw a slight increase in homeownership to 69%. This could be attributed to residents rushing to purchase homes before rates increased further. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a jump in homeownership to 71%, likely due to increased affordability of mortgages.
Renter percentages in zip code 45005 have shown a slight decrease, moving from 31% in 2013 to 29% in 2022. This decline in renters corresponds with an increase in average rent prices. In 2013, the average rent was $826, which rose to $973 by 2022, an 18% increase. Despite this increase in rent prices, the area saw population growth from 30,992 in 2013 to 32,536 in 2022, suggesting that the local economy remained attractive to residents despite rising housing costs.
Looking at the most recent data, average home prices in zip code 45005 continued their upward trajectory, reaching $243,795 in 2023 and $255,857 in 2024. This represents a 5.7% increase from 2023 to 2024. Interestingly, this price growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in both average home prices and rent prices in zip code 45005. Based on historical data and current trends, average home prices could potentially reach around $300,000 by 2029. Similarly, average rent prices may increase to approximately $1,200 per month over the same period. These projections assume a continuation of current economic conditions and local market factors.
In summary, zip code 45005 has demonstrated a robust housing market characterized by increasing homeownership rates, rising home values, and growing rental prices. The area has shown resilience to fluctuations in federal interest rates, with homeownership rates improving even during periods of higher rates. The consistent population growth and the ability of the market to sustain price increases suggest a strong local economy and desirable living conditions in Franklin, Ohio.
