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Zip Code 45817: Rising Home Values and Ownership Rates in Bluffton, 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 45817, encompassing Bluffton, Ohio, presents an intriguing demographic landscape with notable shifts in homeownership rates and housing market dynamics over the past decade. This area has witnessed a general trend of increasing homeownership, rising average home prices, and fluctuating average rent prices, reflecting the evolving economic conditions of the region.
The ownership percentage in zip code 45817 has shown a significant upward trend, rising from 74% in 2017 to 85% in 2022. This substantial increase in homeownership coincides with a steady rise in average home prices. In 2017, the average home price was $162,058, which climbed to $233,938 by 2022, representing a 44.4% increase over five years. This positive correlation suggests that despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or changing preferences towards homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2017 to 2020 saw relatively low interest rates, ranging from 1% to 2.16%, which likely contributed to the increased homeownership rates observed during this time. The exceptionally low rate of 0.08% in 2021 coincided with a further increase in homeownership to 82%, demonstrating how lower interest rates can stimulate home buying activity by making mortgages more affordable.
Conversely, the renter percentage in zip code 45817 has decreased from 26% in 2017 to 15% in 2022. This decline in renters occurred alongside fluctuations in average rent prices. The average rent increased from $702 in 2017 to $795 in 2018, then experienced some volatility before reaching $744 in 2022. Interestingly, despite the overall decrease in renter percentage, average rent prices have generally trended upwards, possibly reflecting increased demand for the limited rental properties available or improvements in the quality of rental housing stock.
In 2023 and 2024, the housing market in zip code 45817 continued its upward trajectory. The average home price rose to $240,225 in 2023 and further increased to $249,141 in 2024, representing a 6.5% growth over two years. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially indicating strong underlying demand for housing in the area.
Looking ahead, predictive models suggest a continuation of these trends over the next five years. Average home prices are projected to maintain their upward trajectory, potentially reaching around $280,000 by 2029, assuming a similar growth rate. Average rent prices may also continue to rise, potentially reaching $850-$900 per month by 2029, reflecting ongoing demand for rental properties despite the decreasing renter population.
In summary, zip code 45817 has experienced a significant shift towards homeownership, with a concurrent rise in average home prices. This trend has persisted even in the face of recent interest rate increases, suggesting robust demand for housing in the area. The rental market, while shrinking in terms of percentage of residents, has seen generally increasing average rents. These trends paint a picture of a dynamic housing market in Bluffton, with a strong preference for homeownership and a potentially competitive rental market for the remaining rental properties.
