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Zip Code 45233: Rising Home Values and Declining Ownership in Mack, 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 45233, located in Mack, Ohio, presents an intriguing case study of homeownership and housing market trends. This area has experienced significant shifts in ownership percentages, average home prices, and average rent prices over the past decade, reflecting broader economic changes and local market dynamics.
The homeownership rate in zip code 45233 has shown a gradual decline from 2013 to 2022. In 2013, the area boasted an impressive 88% homeownership rate. However, by 2022, this figure had decreased to 82%. Despite this decline, the average home prices in the area have demonstrated a consistent upward trend. In 2013, the average home price was $180,310. By 2022, this figure had risen dramatically to $306,517, representing a substantial 70% increase over the nine-year period.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally expected pattern. When interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.4%), the homeownership rate remained relatively stable at 85-88%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% by 2022, we observe a corresponding decline in homeownership rates to 82%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
As homeownership rates decreased, the percentage of renters in zip code 45233 naturally increased. The renter population grew from 12% in 2013 to 18% in 2022. Interestingly, this increase in the renter population coincided with a significant rise in average rent prices. In 2013, the average rent was $823 per month. By 2022, it had increased to $928, representing a 12.8% increase. This upward trend in rent prices, coupled with the growing renter population, suggests a strong demand for rental properties in the area.
Looking at the most recent data for 2023 and 2024, we see that the upward trend in average home prices has continued. In 2023, the average home price in zip code 45233 reached $322,450, and in 2024, it further increased to $334,432. This represents a 9.1% increase from 2022 to 2024. Notably, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 45233 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $380,000 to $400,000. For rent prices, the upward trend is likely to persist, with average rents potentially increasing to around $1,100 to $1,200 per month by 2029.
In summary, zip code 45233 has experienced a gradual shift from a predominantly homeowner-occupied area to one with a growing renter population. Despite this change, both average home prices and rent prices have shown significant increases. The interplay between federal interest rates, homeownership rates, and housing prices underscores the complex dynamics of the local real estate market. As the area continues to evolve, it will be crucial to monitor these trends and their impact on the community's housing landscape.
