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East Hills, Pittsburgh: Rising Home Values Amidst Shifting Ownership Trends
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
East Hills, a neighborhood in Pittsburgh, Pennsylvania, has experienced significant changes in its housing market over the past decade. From 2013 to 2022, the area saw a notable shift in homeownership rates and a substantial increase in average home prices, reflecting broader economic trends and local market dynamics. The homeownership rate in East Hills decreased from 50% in 2013 to 39% in 2022. Concurrently, the average home price more than doubled, rising from $34,624 in 2013 to $77,101 in 2022. This sharp increase in home prices likely contributed to the decline in homeownership, as purchasing a home became less affordable for many residents. The relationship between federal interest rates and homeownership rates in East Hills followed expected trends. When interest rates were historically low (0.11% to 0.40%) from 2013 to 2016, the homeownership rate remained relatively stable between 44% and 50%. However, as interest rates rose more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined more sharply to 39%. This suggests that higher interest rates may have deterred potential homebuyers.
As the percentage of renters increased from 50% in 2013 to 61% in 2022, average rent prices in East Hills fluctuated. The average rent was $849 in 2013, decreased to $553 in 2015, rose to $725 in 2017, and then declined again to $552 in 2022. This volatility in rent prices, coupled with the increasing renter population, indicates a complex rental market influenced by factors such as housing supply, local economic conditions, and demographic changes.
In 2023 and 2024, East Hills experienced a correction in average home prices. The average home price decreased to $67,305 in 2023, a significant drop from the previous year. However, in 2024, prices showed signs of recovery, increasing to $71,899. This trend occurred against a backdrop of higher interest rates, with federal rates rising to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and market dynamics.
Predictive models suggest that average home prices in East Hills may continue to show modest growth over the next five years, potentially reaching around $85,000 by 2029. Rent prices are expected to stabilize and potentially increase slightly, possibly reaching an average of $600-$650 per month in the same timeframe. These predictions assume relatively stable economic conditions.
In summary, East Hills has experienced a significant shift from homeownership to renting over the past decade, driven by rising home prices and fluctuating interest rates. The neighborhood's housing market has shown resilience and adaptability, with recent corrections in home prices followed by signs of recovery. As the area continues to evolve, balancing affordable housing options with market growth will likely be key to maintaining a diverse and thriving community.
