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Garfield, Pittsburgh: Rising Home Values and Shifting Ownership in a Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Garfield, a neighborhood in Pittsburgh, Pennsylvania, has experienced significant changes in its real estate market over the past decade. This analysis examines the trends in homeownership rates, property values, and rental prices, reflecting the area's economic development and increasing attractiveness to residents. The homeownership rate in Garfield has shown a steady increase from 39% in 2013 to 45% in 2022. This growth coincides with a substantial rise in average home prices, which increased from $56,646 in 2010 to $189,990 in 2022, representing a 235% increase. The parallel growth in homeownership rates and property values suggests an increasing desirability of the neighborhood. For example, when average home prices reached $130,991 in 2018, the ownership rate remained stable at 43%, indicating sustained interest in homeownership despite rising costs.
Federal interest rates have played a crucial role in shaping Garfield's homeownership trends. From 2010 to 2015, historically low interest rates ranging from 0.09% to 0.18% likely contributed to the initial increase in homeownership from 39% in 2013 to 40% in 2015. Despite rising interest rates from 2016 onwards, reaching 1.83% in 2018, the homeownership rate in Garfield continued to increase, reaching 43% that year. This suggests that local factors, such as neighborhood improvements or changing demographics, may have offset the potential negative impact of rising interest rates on homeownership.
The rental market in Garfield has also undergone notable changes. The percentage of renters decreased from 61% in 2013 to 55% in 2022, inversely mirroring the rise in homeownership. Despite this decline in the renter population, average rent prices have increased significantly, rising from $647 in 2013 to $974 in 2022, a 51% increase. This trend indicates a tightening rental market, possibly due to improved neighborhood amenities or limited housing supply. Population fluctuations, from 3,813 in 2013 to 3,996 in 2022, may have also influenced rental demand and prices.
In 2023 and 2024, Garfield's real estate market showed signs of stabilization. The average home price in 2023 was $181,956, a slight decrease from the previous year, but it rebounded to $191,196 in 2024. This recovery occurred despite high federal interest rates of 5.02% in 2023 and 5.33% in 2024, suggesting a resilient local housing market.
Predictive models forecast continued growth in both home prices and rents over the next five years. Average home prices are expected to surpass $200,000 by 2026, potentially reaching $220,000 by 2029. Rent prices are projected to follow a similar upward trajectory, potentially exceeding $1,200 per month by 2029. These projections assume continued economic stability and sustained interest in the Garfield neighborhood.
In conclusion, Garfield has demonstrated a robust real estate market characterized by increasing homeownership rates, rising property values, and growing rental prices. The neighborhood's ability to maintain these trends despite fluctuating interest rates and economic conditions suggests a strong local economy and desirable living conditions. As Garfield continues to evolve, it is likely to remain an attractive option for both homeowners and renters in the Pittsburgh area.
