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Zip Code 45402: Rising Home Values and Shifting Ownership Patterns in Dayton, 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 45402, situated in Dayton, Ohio, encompasses an urban area of 4.48 square miles. This region has witnessed significant changes in homeownership rates, average home prices, and average rent prices over the past decade. The data reveals interesting trends in the local housing market and its response to economic factors.
The homeownership rate in zip code 45402 has experienced a slight decline, moving from 33% in 2013 to 32% in 2022. During this same period, average home prices have shown a remarkable upward trend. In 2013, the average home price stood at $32,646, which surged to $69,038 by 2022, marking a substantial 111.5% increase over nine years. This trend indicates that while home prices have risen significantly, it has not translated into higher homeownership rates in the area.
Federal interest rates have played a role in shaping homeownership trends in the region. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.40%), homeownership rates in the zip code remained relatively stable around 32-33%. However, as interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), homeownership rates dipped slightly to 30% in 2019 and 2020. Interestingly, despite interest rates dropping to 0.08% in 2021, homeownership only marginally increased to 33%, suggesting that other factors beyond interest rates are influencing homeownership in this area.
Renter percentages in zip code 45402 have remained consistently high, ranging from 66% to 70% between 2013 and 2022. Average rent prices have shown an overall increasing trend during this period. In 2013, the average rent was $633, which rose to $677 by 2022, representing a 7% increase. However, it's worth noting that rent prices peaked at $704 in 2019 before slightly declining. The high percentage of renters, coupled with the moderate increase in rent prices, suggests a strong demand for rental properties in this area, possibly due to the urban setting and the rising home prices that may be pricing out potential buyers.
In 2023, the average home price in zip code 45402 decreased to $64,905 from the previous year's $69,038, marking a 6% decline. However, in 2024, the average home price rebounded to $68,758, nearly reaching the 2022 level. This recent price fluctuation coincides with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. These higher interest rates may be contributing to the slight cooling in home prices observed in 2023 and the modest recovery in 2024.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 45402 are likely to continue their overall upward trajectory, albeit at a potentially slower pace due to higher interest rates. We might expect average home prices to reach around $75,000 to $80,000 in the next five years. Average rent prices are also expected to increase, potentially reaching $750 to $800 per month in the same period, driven by the consistent demand for rental properties in the area.
In summary, zip code 45402 in Dayton, Ohio, has experienced a significant increase in average home prices over the past decade, despite a slight decline in homeownership rates. The area maintains a high percentage of renters, with moderately increasing rent prices. Recent interest rate hikes have influenced the housing market, causing some short-term fluctuations in home prices. Moving forward, both home prices and rent prices are expected to continue their upward trends, reflecting the ongoing demand for housing in this urban area.
