Zip Code 45174: Rising Home Values and Ownership Rates in Terrace Park, Ohio
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Terrace Park, located in zip code 45174 in Ohio, is a small community that has experienced notable shifts in homeownership rates and property values over the past decade. This area has consistently maintained a high rate of owner-occupied housing, with a general trend towards increasing homeownership and rising average home prices.
The ownership percentage in Terrace Park has shown a steady increase from 90% in 2013 to 95% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $401,604, which increased to $620,728 by 2022, representing a substantial 54.6% growth over nine years. This strong correlation between rising homeownership rates and increasing home values suggests a robust and desirable housing market in the area.
Federal interest rates have played a role in shaping homeownership trends in Terrace Park. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership in the zip code increased from 90% to 93%, likely influenced by the favorable borrowing conditions. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in Terrace Park continued to climb, reaching 95% in 2022. This suggests that other local factors, such as the desirability of the area, may have outweighed the impact of rising interest rates on homeownership decisions.
The rental market in Terrace Park has shown interesting trends in relation to the declining percentage of renters. In 2013, 10% of housing units were renter-occupied, with an average rent of $1,591. By 2022, the percentage of renters had decreased to 5%, while the average rent fluctuated, reaching $1,606. Notably, there was a significant spike in average rent to $3,188 in 2016 and $3,121 in 2017, despite the renter percentage remaining steady at 7% during these years. This suggests that while fewer properties were available for rent, those that were commanded premium prices, possibly due to their scarcity or high quality.
In 2023 and 2024, the housing market in Terrace Park continued its upward trajectory. The average home price rose to $658,851 in 2023 and further increased to $684,427 in 2024, representing a 10.3% increase over two years. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates do not appear to have dampened the local housing market, suggesting strong underlying demand for properties in this zip code.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Terrace Park are likely to continue their upward trajectory over the next five years. Assuming a conservative annual growth rate of 4-5%, average home prices could potentially reach around $850,000 to $875,000 by 2029. Average rent prices, which have shown more volatility, may stabilize or see modest increases, potentially reaching around $1,800 to $2,000 per month in the same timeframe, assuming a 2-3% annual increase.
In summary, Terrace Park (zip code 45174) has demonstrated a strong trend towards homeownership, with consistently rising average home prices. The area has maintained its attractiveness to homeowners even in the face of increasing interest rates, suggesting a robust local housing market. While the rental market has shrunk, it has shown periods of premium pricing. The continued rise in home values, even amidst higher interest rates in recent years, indicates a resilient and desirable real estate market in this Ohio community.
