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Boulevard's Rising Home Values and Shifting Ownership Trends in Shaker Heights
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
Boulevard, a neighborhood in Shaker Heights, Ohio, has experienced significant changes in its housing market over the past decade. This area, known for its diverse housing options and community-oriented atmosphere, has seen fluctuations in homeownership rates, average home prices, and rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Boulevard has shown a gradual decline over the years. In 2013, the neighborhood had a 54% homeownership rate, which decreased to 51% by 2020 and further to 50% by 2022. This shift indicates a trend towards a more rental-oriented market. Concurrently, average home prices in the area have shown a steady upward trajectory. In 2013, the average home price was $268,392, which increased to $313,356 by 2020, representing a 16.8% rise over seven years. This upward trend continued, with average home prices reaching $397,683 in 2022, a substantial 48.2% increase from 2013.
The relationship between federal interest rates and homeownership rates in Boulevard appears to follow general economic principles. From 2013 to 2016, relatively low interest rates (ranging from 0.11% to 0.4%) coincided with stable homeownership rates around 54-55%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), a slight decrease in homeownership rates was observed, dropping to 51% by 2020. This trend suggests that higher interest rates may have made homeownership less attainable for some residents.
Renter percentages in Boulevard have shown a corresponding inverse relationship to homeownership rates. In 2013, the renter-occupied percentage was 45%, which increased to 49% by 2022. Average rent prices have fluctuated over this period, with notable increases and decreases. In 2013, the average rent was $962, which rose to $1,134 by 2016, an 18% increase. However, there was a significant drop to $948 in 2020, possibly influenced by the economic impact of the COVID-19 pandemic. By 2022, average rent had decreased further to $903, representing a 6.1% decline from 2013 levels. These rent fluctuations, coupled with the increasing home prices, may have contributed to the shift towards more renter-occupied units in the neighborhood.
In 2023 and 2024, Boulevard experienced a continued surge in average home prices. The average home price in 2023 reached $418,666, a 5.3% increase from 2022. This upward trend persisted into 2024, with average home prices climbing to $447,281, marking a 6.8% year-over-year increase. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Boulevard are likely to continue their upward trajectory over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices, which have shown volatility in recent years, are expected to stabilize and potentially increase as demand for rental properties remains strong in the area.
In summary, Boulevard has experienced a gradual shift towards a more balanced housing market with increasing average home prices and fluctuating rent prices. The interplay between federal interest rates, homeownership rates, and rental demand has shaped the neighborhood's housing landscape. As Boulevard continues to evolve, these trends will play a crucial role in determining the future of its real estate market and community composition.
