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Zip Code 45240: Rising Home Values and Shifting Ownership Trends in Forest Park, 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
Forest Park, located in zip code 45240 in Ohio, presents an intriguing case study of housing market dynamics. This suburban area has experienced notable shifts in homeownership rates and property values over the past decade, reflecting broader economic trends and local market conditions. The ownership percentage in Forest Park has shown a slight decline from 2013 to 2022, dropping from 60% to 59%. During this same period, average home prices have seen a significant increase. In 2013, the average home price was $100,064, which steadily rose to $212,708 by 2022, representing a substantial 112.6% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Forest Park. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable at around 60-62%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% by 2022, there was a slight decrease in homeownership rates to 59%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Forest Park have shown a modest increase from 40% in 2013 to 41% in 2022. Interestingly, average rent prices have experienced significant fluctuations during this period. In 2013, the average rent was $1,029, which remained relatively stable until 2017 when it jumped to $1,202. After some fluctuations, it reached $1,227 in 2022, representing a 19.2% increase from 2013. The increase in renter percentages, coupled with rising rent prices, suggests a growing demand for rental properties in the area, possibly driven by those priced out of the homeownership market.
In 2023 and 2024, the housing market in Forest Park continued its upward trajectory. The average home price reached $225,772 in 2023 and further increased to $236,501 in 2024, marking a 11.2% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, yet the continued rise in home prices suggests strong demand in the local market.
Looking ahead, predictive models forecast continued growth in both average home and rent prices over the next five years. Average home prices are projected to maintain their upward trend, potentially reaching around $275,000 by 2029. Similarly, average rent prices are expected to increase, possibly surpassing $1,400 per month within the same timeframe. These projections are based on historical trends and current market conditions, assuming relatively stable economic factors.
In summary, Forest Park in zip code 45240 has experienced a notable increase in property values and a slight shift towards renting over the past decade. The inverse relationship between rising home prices and declining homeownership rates, coupled with increasing rent prices, suggests a changing housing landscape. The area's resilience in the face of rising interest rates indicates a robust local real estate market, with continued growth expected in both the ownership and rental sectors in the coming years.
