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Zip Code 45801 in Lima, Ohio: Rising Home Values Amidst Population Decline
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 45801, located in Lima, Ohio, has experienced significant shifts in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual decline in population, which has influenced housing market dynamics.
The homeownership rate in this zip code has shown notable fluctuations. In 2013, 57% of housing units were owner-occupied. This rate increased to 60% by 2019, indicating a growing preference for homeownership. However, by 2022, the rate decreased to 56%, suggesting a shift back towards renting. Concurrently, average home prices have shown a steady upward trend. In 2013, the average home price was $64,685, which increased to $114,236 by 2022, representing a substantial 76.6% increase over this period.
The relationship between federal interest rates and homeownership rates in this area is noteworthy. From 2013 to 2019, when interest rates were relatively low (ranging from 0.11% to 2.16%), homeownership rates increased from 57% to 60%. However, as interest rates began to rise more sharply in 2022 (1.68%), homeownership rates dropped to 56%, suggesting that higher interest rates may have deterred some potential buyers.
Renter percentages have inversely mirrored homeownership trends. In 2013, 43% of housing units were renter-occupied, decreasing to 40% by 2019 as homeownership increased. By 2022, the renter percentage rose back to 44%. Average rent prices have generally increased over this period, from $650 in 2013 to $740 in 2022, a 13.8% increase. This rise in rent prices, coupled with the decrease in population from 23,618 in 2013 to 20,615 in 2022, suggests a tightening rental market despite overall population decline.
In 2023 and 2024, the housing market in zip code 45801 continued its upward trajectory. The average home price reached $121,890 in 2023 and further increased to $128,165 in 2024, representing a 12.2% increase over two years. This growth occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local demand or other market factors offsetting the impact of higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in zip code 45801 may continue to rise over the next five years, albeit at a potentially slower rate due to high interest rates. Average rent prices are also expected to increase, driven by the recent trend towards renting and the overall increase in housing costs. However, these predictions should be considered in the context of potential economic changes and local market factors.
In summary, zip code 45801 has experienced a recent shift from homeownership to renting, coinciding with rising home prices and interest rates. Despite a declining population, both home prices and rent have increased significantly. The coming years may see continued growth in housing costs, with the balance between owning and renting likely to be influenced by economic conditions and housing affordability.
