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Zip Code 45335: Rising Home Values and Ownership Rates in Shawnee Hills, 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 45335, located in Shawnee Hills, Ohio, presents an interesting case study of housing market dynamics. This area has experienced notable shifts in homeownership rates and property values over the past decade, reflecting broader economic trends and local market conditions. The homeownership rate in this zip code has shown a general upward trend, increasing from 78% in 2014 to 83% in 2022. This rise in homeownership coincides with a significant increase in average home prices, which grew from $128,368 in 2014 to $220,380 in 2022, representing a substantial 71.7% increase over eight years. This correlation suggests that rising property values have not deterred homeownership, possibly indicating strong local demand and favorable economic conditions for potential buyers.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2014 to 2020 saw relatively low interest rates, ranging from 0.09% to 2.16%, which likely contributed to the steady increase in homeownership. The sharp drop in interest rates to 0.08% in 2021 coincided with a surge in average home prices to $201,273, a 14.7% increase from the previous year. This demonstrates how low interest rates can stimulate housing demand and price appreciation.
Renter occupancy in zip code 45335 has generally decreased, from 22% in 2014 to 17% in 2022, inversely mirroring the rise in homeownership. Interestingly, average rent prices have shown fluctuations during this period. They peaked at $880 in 2014, decreased to $786 in 2020, and then slightly rebounded to $785 in 2022. This trend suggests that the rental market has not experienced the same consistent growth as the homeownership market, possibly due to the shift towards homeownership and changes in local housing preferences.
In 2023 and 2024, the housing market in zip code 45335 continued its upward trajectory. Average home prices reached $228,710 in 2023 and further increased to $237,856 in 2024, representing a 3.7% and 4% year-over-year growth, respectively. This growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. The continued price appreciation in the face of higher interest rates suggests strong underlying demand and possibly limited housing supply in the area.
Looking ahead, predictive models suggest that the upward trend in average home prices is likely to continue over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices may see a gradual increase as well, especially if higher mortgage rates slow down the transition from renting to homeownership. However, the strong preference for homeownership in this area could continue to put pressure on the rental market.
In summary, zip code 45335 has demonstrated a robust housing market characterized by increasing homeownership rates and substantial appreciation in average home values. The area has shown resilience to rising interest rates, with continued price growth in recent years. The inverse relationship between homeownership and rental occupancy, coupled with fluctuating rent prices, highlights the dynamic nature of the local housing market. As the area moves forward, it will be crucial to monitor how these trends evolve, particularly in response to changing economic conditions and interest rate environments.
