Loading Content...
Zip Code 45216: Rising Home Values and Ownership Rates in Cincinnati's Dynamic Housing Market
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 45216, located in Cincinnati, Ohio, has experienced significant shifts in homeownership rates and property values over the past decade. This area has seen a notable transition from a predominantly owner-occupied neighborhood to one with a more balanced mix of owners and renters, accompanied by substantial changes in average home prices and rent costs.
The homeownership rate in zip code 45216 has fluctuated considerably since 2013. Starting at 51% in 2013, it declined to a low of 41% in 2017 before rebounding to 51% in 2022. This trend coincides with changes in average home prices, which saw a dramatic increase from $52,855 in 2013 to $132,221 in 2022, representing a 150% rise over nine years. The relationship between homeownership rates and average home prices is complex, with initial price increases corresponding to a decrease in ownership, followed by a recovery in ownership rates despite continued price appreciation.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period of historically low interest rates from 2013 to 2021, with rates ranging from 0.08% to 0.40%, coincided with the initial decline and subsequent recovery in homeownership rates. As interest rates remained low, it likely contributed to the gradual increase in homeownership from 2017 onwards, making mortgage financing more accessible to potential buyers despite rising home prices.
Renter occupancy in zip code 45216 showed an inverse relationship to homeownership trends, peaking at 58% in 2017 before declining to 49% by 2022. Average rent prices have generally trended upward, increasing from $648 in 2013 to $833 in 2022, a 28.5% rise. The population in the zip code has remained relatively stable, fluctuating between 9,289 and 10,197 residents during this period, suggesting that changes in renter percentages were more influenced by shifts in housing preferences and economic factors rather than significant population changes.
In 2023 and 2024, average home prices in zip code 45216 continued their upward trajectory, reaching $137,161 in 2023 and $147,786 in 2024. This represents a further 11.8% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the near-zero rates of the early 2020s.
Looking ahead, predictive models suggest that average home prices in zip code 45216 may continue to rise over the next five years, potentially reaching around $170,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,000 per month within the same timeframe. These projections are based on historical trends and current economic indicators.
In summary, zip code 45216 has witnessed a remarkable recovery in homeownership rates despite substantial increases in average home prices. The area has transitioned from a renter-majority to a more balanced owner-renter mix, with both home values and rent prices showing strong upward trends. The interplay between federal interest rates, housing affordability, and local economic factors will likely continue to shape the housing market dynamics in this Cincinnati neighborhood in the coming years.
