Loading Content...
Brooklyn Centre: Rising Home Values Amid Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Brooklyn Centre, a neighborhood in Cleveland, Ohio, has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home values, and rental market dynamics from 2013 to 2024, with projections for the future. The homeownership rate in Brooklyn Centre has shown a gradual decline from 39% in 2013 to 35% in 2022. Conversely, average home prices in the neighborhood have seen a substantial increase during this period. In 2013, the average home price was $29,091, which rose dramatically to $86,454 by 2022, representing a 197% increase over nine years. This inverse relationship between homeownership rates and home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in Brooklyn Centre. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 35-39%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), the homeownership rate showed a slight decline, dropping to 35% by 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The rental market in Brooklyn Centre has also experienced changes. The percentage of renters increased from 61% in 2013 to 65% in 2022. Concurrently, average rent prices rose from $665 in 2013 to $728 in 2022, an increase of about 9.5%. However, this increase in rent was not as steep as the rise in home prices, which may explain the shift towards renting. The neighborhood's population has fluctuated over the years, with a notable decrease from 8,625 in 2020 to 7,811 in 2022, potentially influencing the rental market dynamics.
In 2023 and 2024, the housing market in Brooklyn Centre continued to evolve. The average home price reached $89,518 in 2023 and further increased to $97,366 in 2024, showing a continued upward trend. This occurred despite rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, predictive models suggest that average home prices in Brooklyn Centre may continue to rise over the next five years, potentially reaching around $120,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $800 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Brooklyn Centre has experienced a significant increase in average home prices and a slight decrease in homeownership rates over the past decade. The rental market has grown, with more residents opting to rent as home prices outpaced rent increases. The neighborhood's housing market has shown resilience, with continued price growth even in the face of rising interest rates. These trends reflect the complex interplay of economic factors, population changes, and housing market dynamics in this Cleveland neighborhood.
