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Zip Code 45502: Rising Home Values and Strong Homeownership in Springfield, 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 45502, located in Springfield, Ohio, has shown interesting demographic and housing trends over the past decade. This area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 45502 has seen a notable increase from 81% in 2013 to 84% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $145,107, which steadily increased to $258,925 by 2022, representing a substantial 78.4% growth over this period. This correlation suggests that despite rising home prices, more residents in the area have been able to enter the housing market as owners.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 45502. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership remained stable at 81%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership actually increased slightly to 82% in 2019. This trend continued even as interest rates dropped again in 2020 and 2021, with homeownership reaching 85% in 2021, possibly due to pandemic-related factors and accumulated savings.
The rental market in zip code 45502 has experienced some fluctuations in both occupancy rates and average rent prices. The percentage of renters decreased from 19% in 2013 to 16% in 2022. Average rent prices, however, did not follow a consistent trend. They peaked at $1,010 in 2014, dropped to a low of $857 in 2017, and then rebounded to $982 by 2022. These fluctuations in rent prices occurred despite the overall decrease in the renter population, suggesting that other factors such as housing quality improvements or broader economic conditions may have influenced rental rates.
In 2023 and 2024, the housing market in zip code 45502 continued to evolve. The average home price rose to $275,252 in 2023 and further increased to $287,691 in 2024, showing a continued upward trend in property values. Concurrently, federal interest rates climbed significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 45502 may continue to appreciate, potentially reaching around $350,000 by 2029 if the current growth rate persists. However, this growth might moderate due to higher interest rates. Average rent prices could stabilize around $1,100 to $1,200 per month, balancing affordability with market demand.
In summary, zip code 45502 has demonstrated resilience in its housing market, with increasing homeownership rates despite rising home prices. The interplay between federal interest rates, home prices, and rental rates has shaped a dynamic real estate landscape in this Springfield, Ohio neighborhood. As the market continues to evolve, it will be crucial to monitor these trends and their impact on the local community.
