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Zip Code 45249: Rising Home Values and Stable Ownership in Montgomery, 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
Montgomery, Ohio, zip code 45249, is a suburban area known for its high-quality schools and community amenities. This area has experienced notable fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards increasing average home values and relatively stable rental markets.
The homeownership rate in zip code 45249 has remained relatively steady, fluctuating between 67% and 68% from 2013 to 2022. Despite this stability, average home prices have shown a significant upward trend. In 2013, the average home price was $278,158, which increased to $486,306 by 2022, representing a 74.8% increase over this period. This substantial rise in home values did not significantly impact homeownership rates, suggesting that other factors, such as local economic conditions or demographic changes, may have helped maintain steady ownership levels.
Federal interest rates have played a role in shaping homeownership trends in the area. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate remained stable at 67%. This stability during a period of low interest rates might indicate that other factors, such as high home prices, could have offset the potential boost to homeownership that low interest rates typically provide.
Renter percentages in zip code 45249 have mirrored the homeownership rates, remaining relatively constant between 32% and 33% from 2013 to 2022. Average rent prices, however, have shown some fluctuation. In 2013, the average rent was $1,310, which decreased to $1,208 in 2018, before rising again to $1,290 in 2022. This represents a slight overall decrease of 1.5% from 2013 to 2022, despite the area's population growth from 13,733 in 2013 to 14,113 in 2022. The stability in renter percentages coupled with relatively stable rent prices suggests a balanced rental market in the area.
In 2023 and 2024, average home prices in zip code 45249 continued their upward trajectory, reaching $519,000 in 2023 and $541,746 in 2024. This represents a 6.7% and 4.4% year-over-year increase respectively. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and future homeownership rates in the area.
Looking ahead, predictive models suggest that average home prices in zip code 45249 may continue to rise over the next five years, potentially reaching around $650,000 by 2029. This projection is based on the historical trend of steady increases observed from 2013 to 2024. Average rent prices are expected to follow a more moderate upward trend, potentially reaching approximately $1,500 by 2029, assuming the current pattern of gradual increases continues.
In summary, zip code 45249 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The rental market has remained relatively stable, with minor fluctuations in average rent prices. The area's ability to maintain steady homeownership levels in the face of rising home values suggests a strong local economy and desirable living conditions. However, the recent sharp increases in federal interest rates, combined with continuing rises in home prices, may present challenges for future homebuyers in this zip code.
