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Zip Code 45305: Rising Home Values and Shifting Ownership Patterns in Bellbrook, 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 45305, located in Bellbrook, Ohio, has experienced notable changes in homeownership, average home prices, and average rent prices over the past decade. This area has maintained a predominantly owner-occupied housing market, with homeownership rates consistently above 79% since 2013.
The homeownership rate in zip code 45305 peaked at 84% from 2015 to 2017, coinciding with a period of steady growth in average home prices. In 2015, the average home price was $218,121, rising to $234,596 by 2017. This trend suggests a strong correlation between increasing property values and high homeownership rates. However, from 2020 to 2022, there was a slight decline in homeownership, dropping from 80% to 79%, while average home prices continued to rise significantly from $277,815 to $337,983 during the same period.
Federal interest rates appear to have influenced homeownership rates in this zip code. For instance, the period of low interest rates from 2013 to 2016 (ranging from 0.09% to 0.40%) coincided with the highest homeownership rates observed (82% to 84%). As interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), homeownership rates remained stable but did not increase further, suggesting that higher borrowing costs may have deterred some potential buyers.
Renter percentages in zip code 45305 have shown an inverse relationship to homeownership rates, as expected. The proportion of renters increased from 16% in 2013 to 21% in 2022. Interestingly, average rent prices have fluctuated over this period. In 2013, the average rent was $957, peaking at $1,059 in 2015 before declining to $969 in 2018. By 2022, the average rent had risen again to $1,015. These fluctuations in rent prices don't show a clear correlation with the steady increase in renter percentages, suggesting that other factors, such as local economic conditions or housing supply, may be influencing rental markets in this area.
In 2023 and 2024, average home prices in zip code 45305 continued their upward trajectory, reaching $351,804 in 2023 and $362,903 in 2024. This represents a significant increase from the 2022 average of $337,983. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, marking the highest rates since 2007. These high interest rates may impact future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in zip code 45305 are likely to continue their upward trend over the next five years, albeit at a potentially slower rate due to the current high interest rate environment. Average rent prices are also expected to increase moderately, driven by the growing renter population and overall housing market dynamics.
In summary, zip code 45305 has maintained high homeownership rates despite rising home prices, with a slight shift towards renting in recent years. The area has seen substantial appreciation in property values, particularly since 2020. While rent prices have fluctuated, they've shown an overall upward trend. The interplay between federal interest rates, homeownership rates, and housing prices will likely continue to shape the real estate landscape in this Bellbrook zip code in the coming years.
