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Zip Code 45227: Rising Home Values and Shifting Ownership Trends in Cincinnati
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 45227, located in Cincinnati, Ohio, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a shift in its residential landscape, with fluctuations in both ownership percentages and average home values.
The ownership percentage in zip code 45227 has shown some variability over the years. In 2013, the homeownership rate stood at 58%. This rate decreased to 51% by 2016 and remained stable until 2019. However, there was a notable increase in homeownership starting in 2020, reaching 58% by 2021 and settling at 57% in 2022. Concurrently, average home prices in the area have shown a consistent upward trend. In 2013, the average home price was $109,146. This figure rose steadily, reaching $176,254 in 2019, and then experienced a sharp increase to $241,652 by 2022, representing a 121% increase over the 2013 value.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. As interest rates remained low from 2013 to 2015 (below 0.15%), homeownership rates declined slightly. However, as interest rates began to rise from 2016 onwards, reaching 1.83% in 2018, homeownership rates stabilized around 51%. Interestingly, the increase in homeownership rates from 2020 to 2022 coincided with a period of fluctuating interest rates, suggesting that other factors may have influenced this trend.
Renter percentages in zip code 45227 have mirrored the inverse of homeownership trends. The renter percentage increased from 41% in 2013 to a peak of 49% from 2016 to 2019, before decreasing to 43% in 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $879. It rose to $1,006 in 2016, slightly decreased to $963 in 2019, and then increased again to $988 in 2022. The population of the zip code has remained relatively stable during this period, with only minor fluctuations, suggesting that changes in rent prices were not primarily driven by population changes.
In 2023, the average home price in zip code 45227 reached $252,845, continuing the upward trend observed in previous years. This represents a 4.6% increase from 2022. Moving into 2024, the average home price has further increased to $269,522, marking a 6.6% rise from 2023. Notably, federal interest rates have also seen significant increases, rising to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on the observed trends, we can forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to maintain their upward trajectory, potentially reaching around $320,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. However, these projections may be influenced by various factors, including economic conditions and local market dynamics.
In summary, zip code 45227 has experienced a resurgence in homeownership rates in recent years, coupled with significant increases in average home prices. Rent prices have also shown an overall upward trend, albeit with some fluctuations. The area has demonstrated resilience in its housing market, with continued price appreciation despite rising interest rates. These trends suggest a dynamic and evolving residential landscape in this Cincinnati neighborhood.
