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Arlington, Pittsburgh: Home Values Double Amid Ownership Shifts
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
Arlington, a neighborhood in Pittsburgh, Pennsylvania, has experienced significant changes in its housing market and demographics over the past decade. The area has seen fluctuations in homeownership rates and substantial increases in average home prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Arlington has declined notably since 2016. At its peak in 2016, the neighborhood had a homeownership rate of 62%, which dropped to 47% by 2022. This downward trend in homeownership coincided with a substantial increase in average home prices. In 2016, the average home price in Arlington was $46,542, but by 2022, it had more than doubled to $103,426, representing a 122% increase over six years.
The relationship between federal interest rates and homeownership rates in Arlington appears to follow expected patterns. From 2016 to 2019, as interest rates gradually increased from 0.4% to 2.16%, homeownership rates remained relatively stable, ranging between 56% and 62%. However, the sharp drop in interest rates to 0.38% in 2020 did not immediately boost homeownership, likely due to economic uncertainties during the pandemic. Instead, the homeownership rate fell to 42% that year, suggesting other factors were at play.
Renter percentages in Arlington have generally mirrored the inverse of homeownership trends. As homeownership declined, the percentage of renters increased from 38% in 2016 to 53% in 2022. Average rent prices have shown volatility during this period. In 2016, the average rent was $735, rising to a peak of $867 in 2018 before declining to $618 in 2022. This represents a 16% decrease in average rent from 2016 to 2022, despite the increase in the renter population. The population of Arlington has remained relatively stable during this period, decreasing slightly from 1,483 in 2016 to 1,419 in 2022.
Looking at the most recent data, the average home price in Arlington decreased to $93,600 in 2023 and slightly increased to $95,210 in 2024. This represents a 9.5% decrease from the 2022 price, possibly indicating a cooling in the housing market. Simultaneously, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may have contributed to the moderation in home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Arlington may continue to experience moderate growth, potentially reaching around $110,000 by 2029. Average rent prices are expected to stabilize and potentially increase slightly, possibly reaching $700-$750 per month in the same timeframe, assuming economic conditions remain relatively stable.
In summary, Arlington has experienced a significant shift from homeownership to renting over the past decade, coupled with substantial increases in average home prices. Despite this, average rent prices have shown volatility and a recent decline. The neighborhood's housing market appears to be adjusting to broader economic factors, including interest rate changes and local market dynamics. The coming years may see a stabilization in both home prices and rent, with moderate growth expected in both sectors.
