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Home Values and Ownership in Homewood South: A Decade of Change
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
Homewood South, a neighborhood in Pittsburgh, Pennsylvania, has experienced significant changes in its housing market over the past decade. This area, known for its diverse community and ongoing revitalization efforts, has seen notable shifts in homeownership rates and housing costs, reflecting broader economic trends and local developments. The homeownership rate in Homewood South has shown a general upward trend, increasing from 37% in 2013 to 41% in 2022. This rise in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $39,027, which more than doubled to $94,984 by 2022. This substantial appreciation in home values likely contributed to wealth accumulation for existing homeowners while potentially making homeownership more challenging for new buyers. The relationship between federal interest rates and homeownership rates in Homewood South presents an interesting dynamic. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.83%), homeownership rates fluctuated rather than showing a consistent upward trend. This suggests that other local factors, such as employment opportunities and neighborhood development initiatives, may have played a more significant role in homeownership decisions than interest rates alone.
Renter occupancy in Homewood South has correspondingly decreased from 63% in 2013 to 59% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. Starting at $573 in 2013, average rents decreased to a low of $449 in 2017 before climbing back up to $647 in 2022. This fluctuation in rent prices, combined with the area's changing population (which peaked at 2,485 in 2016 and settled at 2,182 in 2022), suggests a dynamic rental market responding to various economic and demographic factors.
Looking at the most recent data, average home prices in Homewood South experienced a decline from $94,984 in 2022 to $82,973 in 2023, followed by a slight increase to $83,996 in 2024. This recent trend coincides with a significant rise in federal interest rates, which jumped from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates likely contributed to the cooling of home prices by making mortgages more expensive for potential buyers.
Applying predictive models to forecast 5-year trends, we anticipate a moderate increase in both average home prices and rent prices in Homewood South. Home prices are expected to resume an upward trajectory, potentially reaching around $100,000 by 2029, assuming economic conditions remain stable and local revitalization efforts continue. Average rent prices are projected to increase at a slower rate, potentially reaching approximately $700 by 2029, reflecting the ongoing balance between housing affordability and neighborhood desirability.
In summary, Homewood South has demonstrated resilience and growth in its housing market over the past decade. The neighborhood has seen a notable increase in homeownership rates and substantial appreciation in home values, despite fluctuations in the rental market. Recent data showing a slight cooling in home prices, influenced by rising interest rates, suggests a market adjustment phase. Looking forward, the area is poised for continued, albeit more moderate, growth in both home values and rental prices, reflecting its evolving status within Pittsburgh's urban landscape.
