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Zip Code 45368: Rising Home Values and Ownership Rates in Rural 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 45368, located in South Charleston, Ohio, presents an intriguing case study of homeownership and housing market dynamics. Over the past decade, this area has experienced notable fluctuations in ownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 45368 has shown a general upward trend, increasing from 73% in 2013 to 78% in 2022. This rise in homeownership coincides with a significant increase in average home prices, which grew from $118,253 in 2013 to $225,889 in 2022, representing a 91% increase over this period. The most substantial year-over-year growth in average home prices occurred between 2020 and 2021, with a 16.6% increase from $174,763 to $203,819.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 45368. The period of historically low interest rates from 2013 to 2021, where rates remained below 1% for several years, likely contributed to the increase in homeownership. For instance, the ownership rate rose from 73% in 2017 to 75% in 2021, coinciding with interest rates dropping from 1% to 0.08%. This correlation suggests that lower interest rates made mortgages more affordable, encouraging more residents to purchase homes.
Renter percentages in zip code 45368 have inversely mirrored the homeownership trend, decreasing from 27% in 2013 to 22% in 2022. Interestingly, average rent prices have shown some volatility during this period. The average rent increased from $884 in 2013 to a peak of $898 in 2021, before decreasing to $831 in 2022. This recent drop in average rent, coupled with the decrease in renter percentage, might indicate a shift towards homeownership or changes in the local rental market dynamics.
In 2023 and 2024, average home prices in zip code 45368 continued to rise, reaching $238,345 in 2023 and $248,834 in 2024. This represents a 5.5% and 4.4% year-over-year increase, respectively. Concurrently, federal interest rates have significantly increased, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 45368 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are expected to stabilize or show modest increases, influenced by the area's homeownership rates and overall housing demand. The interplay between interest rates, housing affordability, and local economic conditions will be crucial in shaping these trends.
In summary, zip code 45368 has experienced a notable increase in homeownership rates and average home prices over the past decade, particularly during periods of low interest rates. The recent rise in interest rates, coupled with continued growth in home prices, may present new challenges for potential homebuyers. The rental market has shown some volatility, with recent decreases in both renter percentages and average rent prices. As the housing market in this area continues to evolve, the balance between homeownership and renting will likely be influenced by broader economic factors and local market conditions.
