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Zip Code 45727: Rising Home Values and Ownership Rates in Dexter City, 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 45727, located in Dexter City, Ohio, has experienced significant changes in homeownership rates and housing prices over the past decade. This rural area has seen a notable shift towards increased owner-occupied housing, accompanied by fluctuations in average home and rent prices.
The trend in homeownership percentages in zip code 45727 shows a remarkable increase from 2013 to 2022. In 2013, the owner-occupied rate was 70%, which steadily rose to reach 90% by 2022. This significant 20 percentage point increase indicates a strong preference for homeownership in the area. Concurrently, average home prices have shown an upward trend. From 2018 to 2022, average home prices increased from $95,198 to $133,204, representing a substantial 40% growth over four years.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low from 2013 to 2020 (ranging from 0.08% to 2.16%), homeownership rates in the area increased significantly. This period of low interest rates likely made mortgages more affordable, contributing to the rise in homeownership.
Conversely, the percentage of renters in zip code 45727 has decreased dramatically. In 2013, the renter-occupied rate was 22%, which steadily declined to 9% by 2022. This 13 percentage point decrease aligns with the increase in homeownership. Average rent prices, however, have shown some volatility. From 2013 to 2022, average rent increased from $524 to $538, peaking at $719 in 2017 before declining again. This fluctuation in rent prices, coupled with the decreasing renter population, suggests a shift in the local housing market dynamics.
In 2023 and 2024, the housing market in zip code 45727 continued to show growth. The average home price rose to $137,359 in 2023 and further increased to $141,512 in 2024. This represents a steady annual growth rate of about 3-4%. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends.
Looking ahead, based on the historical data and current trends, we can project continued growth in average home prices for zip code 45727 over the next five years. Assuming a conservative annual growth rate of 3%, average home prices could reach approximately $164,000 by 2029. Rent prices, which have shown more volatility, are harder to predict but may stabilize or show modest increases, potentially reaching around $580 per month by 2029 if following a 1.5% annual growth rate.
In summary, zip code 45727 has experienced a significant shift towards homeownership, with a corresponding decrease in renters. Average home prices have shown steady growth, while rent prices have fluctuated. The area's housing market appears to be evolving, with a strong preference for owner-occupied housing emerging over the past decade.
