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Central Cleveland: Low Homeownership Amidst Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Central Cleveland's Housing Trends: A Decade of Change Central, a neighborhood in Cleveland, Ohio, has experienced significant changes in its housing market over the past decade. Known for its urban charm and diverse community, Central has maintained a predominantly renter-occupied status, with homeownership rates fluctuating between 10% and 14%. The area has seen a general upward trend in average home prices, accompanied by steady increases in average rent prices.
Home Prices and Ownership Rates: A Complex Relationship The relationship between homeownership rates and average home prices in Central reveals interesting patterns. In 2013, when the homeownership rate was 12%, the average home price stood at $73,883. As home prices rose to $96,021 in 2016, the homeownership rate slightly decreased to 11%. However, by 2020, with average home prices reaching $110,962, the homeownership rate increased to 14%. This suggests that rising home values may have encouraged more residents to invest in property ownership.
Federal Interest Rates and Homeownership Federal interest rates have played a role in shaping homeownership trends in Central. From 2013 to 2016, when interest rates were extremely low (0.11% to 0.40%), homeownership rates remained relatively stable at 11-12%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates increased slightly to 13% in 2019, possibly indicating that some residents were motivated to buy homes before rates increased further.
Rental Market Dynamics Renter percentages have remained consistently high in Central, ranging from 86% to 90% between 2013 and 2022. Average rent prices have shown a steady increase during this period. In 2013, the average rent was $321, rising to $400 in 2019, and further increasing to $420 in 2022. This 30.8% increase in average rent over nine years has occurred alongside a population growth from 11,629 in 2013 to 12,956 in 2022, suggesting strong rental demand in the neighborhood.
Recent Market Developments The most recent data shows that average home prices in Central reached $128,271 in 2023 and further increased to $138,849 in 2024. This represents a significant jump from the $136,067 average in 2022. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the 1.68% rate in 2022. These higher interest rates may impact future homeownership trends in the neighborhood.
Future Projections Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Central will continue to rise, potentially reaching around $160,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $500 per month within the same timeframe. These projections are based on historical trends and current market conditions.
Conclusion In summary, Central has maintained a high renter population with gradually increasing average rent prices. Average home prices have shown significant growth, particularly in recent years. The relationship between homeownership rates and home prices has been complex, with some periods of inverse correlation. Federal interest rates have influenced homeownership trends, with recent increases potentially affecting future buying patterns. As the neighborhood continues to evolve, it's likely to see further increases in both home values and rental costs, maintaining its character as a predominantly renter-occupied area with growing property values.
