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Zip Code 45846: Fort Recovery's Rising Home Values and Ownership Rates
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 45846, encompassing Fort Recovery in Ohio, presents an interesting case study in homeownership and housing market trends. This rural area has seen significant shifts in both ownership rates and property values over the past decade, with a general trend towards increased homeownership and rising average home prices. The ownership percentage in this zip code has shown a steady increase from 85% in 2015 to 90% in 2022, indicating a strong preference for homeownership among residents. This trend correlates with the rise in average home prices, which have more than doubled from $146,591 in 2010 to $278,595 in 2022. The most dramatic increase occurred between 2020 and 2022, with average home prices jumping from $225,591 to $278,595, a 23.5% increase in just two years.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 45846. The period of historically low interest rates from 2010 to 2021, with rates ranging from 0.08% to 1.83%, likely contributed to the increase in homeownership. These low rates made mortgages more affordable, encouraging more residents to purchase homes. The sharp rise in interest rates to 1.68% in 2022 doesn't seem to have immediately impacted the homeownership rate, which remained at 90%.
As homeownership increased, the percentage of renters in zip code 45846 decreased from 15% in 2015 to 10% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. The average rent peaked at $652 in 2015, then declined to a low of $462 in 2019, before rising again to $558 in 2022. This fluctuation in rent prices, coupled with the rising homeownership rate, suggests that many former renters may have transitioned to homeownership, potentially driven by the affordability of mortgages due to low interest rates.
In 2023 and 2024, the housing market in zip code 45846 continued its upward trajectory. The average home price rose to $294,214 in 2023 and further increased to $300,599 in 2024, representing a 7.9% increase 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. These higher rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 45846 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are expected to stabilize or increase moderately, reflecting the area's strong preference for homeownership and limited rental market. However, if interest rates remain high, we may see a shift towards more renting, which could drive up average rent prices.
In summary, zip code 45846 has experienced a significant increase in homeownership rates and average home prices over the past decade, largely supported by a period of low interest rates. The area's strong preference for homeownership, combined with rising property values, suggests a robust and desirable local housing market. However, recent increases in interest rates may influence future trends, potentially slowing home price growth and affecting the balance between owners and renters in the coming years.
