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Hough, Cleveland: A Decade of Housing Market Shifts Amidst Resilience
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hough, a Cleveland neighborhood with a rich history, has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and rental markets from 2013 to 2024, with projections extending to 2029. Homeownership in Hough has seen a notable decline, dropping from 30% in 2013 to 24% in 2022. This decrease occurred despite fluctuations in average home prices. In 2013, the average home price stood at $72,243, but by 2020, it had fallen to $60,399, representing a 16.4% decrease. However, 2021 saw a significant rebound, with prices jumping to $74,213, a 22.9% increase from the previous year. Despite this price recovery, the homeownership rate remained stable at 24%, indicating that rising home values did not immediately translate to increased homeownership.
The role of federal interest rates in Hough's homeownership trends has been significant. Between 2013 and 2020, interest rates were historically low, ranging from 0.09% to 0.38%. However, these favorable borrowing conditions did not prevent the decline in homeownership, suggesting that other factors such as local economic conditions or housing availability may have had a stronger influence on homeownership rates in the neighborhood.
As homeownership decreased, renter occupancy in Hough increased from 69% in 2013 to 76% in 2022. Average rent prices generally trended upward during this period, rising from $491 in 2013 to $531 in 2022, an 8.1% increase. The most significant jump occurred between 2020 and 2021, when average rent rose from $519 to $554, a 6.7% increase in a single year. This rent increase coincided with a slight dip in the renter-occupied percentage from 76% to 74%, suggesting that higher rents may have impacted occupancy rates.
In 2023, the average home price in Hough decreased to $68,285, a 9.6% drop from the previous year, despite a significant increase in federal interest rates to 5.02%. Moving into 2024, there was a recovery in average home prices, rising to $72,744, a 6.5% increase from 2023. The federal interest rate in 2024 stands at 5.33%, continuing the trend of higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Hough may continue to experience moderate growth over the next five years, potentially reaching around $80,000 by 2029. Rent prices are also expected to follow an upward trajectory, potentially surpassing $600 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In conclusion, Hough has witnessed a significant shift towards renter occupancy over the past decade, with homeownership rates declining despite fluctuations in home prices. The neighborhood has shown resilience in its housing market, with recent years demonstrating recovery in home values. The interplay between federal interest rates, local economic factors, and housing affordability continues to shape the residential landscape of this Cleveland neighborhood.
