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Home Values Double in Old Brooklyn: A Decade of Housing Market Shifts
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Old Brooklyn, a neighborhood in Cleveland, Ohio, has experienced notable changes in its housing market over the past decade. From 2013 to 2022, the area witnessed a gradual shift towards renting, with homeownership rates declining slightly while average home prices and rent costs generally increased. The homeownership rate in Old Brooklyn decreased from 64% in 2013 to 60% in 2022. During this same period, average home prices in the neighborhood saw substantial growth, rising from $57,422 in 2013 to $131,654 in 2022, marking a 129% increase over nine years. This inverse relationship between homeownership rates and home prices suggests that rising property values may have made homeownership more challenging for some residents.
Federal interest rates have influenced homeownership trends in Old Brooklyn. 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 60-62%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, the homeownership rate showed a slight downward trend, settling at 60% in 2022. This pattern aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in Old Brooklyn grew from 36% in 2013 to 40% in 2022. Concurrently, average rent prices increased at a more moderate pace compared to home prices, rising from $819 per month in 2013 to $877 in 2022, a 7.1% increase over nine years. The population of Old Brooklyn fluctuated during this period, decreasing from 45,056 residents in 2013 to 42,875 by 2022. This population decline, coupled with the increase in renter percentage, suggests a shift in the neighborhood's housing dynamics, possibly due to changing demographics or economic factors.
In 2023 and 2024, Old Brooklyn continued to see growth in average home prices. The average home price reached $137,428 in 2023 and further increased to $145,725 in 2024, representing a 10.7% increase from 2022 to 2024. During this same period, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the neighborhood.
Based on historical trends and current market conditions, it's projected that average home prices in Old Brooklyn will continue to rise over the next five years, potentially reaching around $170,000 to $180,000 by 2029. Average rent prices are also expected to increase, albeit at a slower rate, possibly reaching $950 to $1,000 per month in the same timeframe.
In summary, Old Brooklyn has experienced a gradual shift towards renting, with homeownership rates slightly declining as average home prices have substantially increased. The neighborhood has shown resilience in its housing market, with consistent growth in property values despite population fluctuations. The interplay between federal interest rates, home prices, and rental trends will likely continue to shape the housing landscape of Old Brooklyn in the coming years.
