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Pendleton's Changing Landscape: Home Values and Ownership in a Historic Cincinnati Neighborhood
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
Pendleton, a historic neighborhood in Cincinnati, Ohio, has experienced significant changes in its real estate landscape over the past decade. This charming area, known for its 19th-century architecture and proximity to downtown Cincinnati, has seen notable shifts in homeownership rates, average home prices, and average rent prices.
The homeownership percentage in Pendleton has shown a general upward trend from 2013 to 2022. In 2013, the homeownership rate was 17%, which increased to 30% by 2022. This overall growth in homeownership coincided with a substantial rise in average home prices. In 2012, the average home price in Pendleton was $160,718, which more than doubled to $427,577 by 2022. This correlation suggests that as property values increased, more residents were motivated to invest in homeownership, potentially viewing it as a sound financial decision.
The relationship between federal interest rates and homeownership rates in Pendleton presents an interesting dynamic. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 0.40%), the neighborhood saw only a modest increase in homeownership during this period. However, the most significant jump in homeownership occurred between 2017 and 2018, rising from 25% to 31%, coinciding with a slight increase in interest rates from 1% to 1.83%. This suggests that local market factors and neighborhood development may have played a more significant role in homeownership decisions than national interest rates alone.
Renter percentages in Pendleton have generally decreased as average rent prices increased. In 2013, 82% of residents were renters, with an average rent of $471. By 2022, the renter percentage had dropped to 70%, while the average rent had risen significantly to $1,189. This trend indicates that as rental prices became less affordable, some residents may have transitioned to homeownership or sought housing in other areas. The population fluctuations, from 362 in 2013 to 406 in 2022, suggest that the neighborhood has maintained its appeal despite these changes.
In 2023 and 2024, Pendleton experienced a slight decline in average home prices. The average home price in 2023 was $410,281, dropping further to $403,206 in 2024. This downturn coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of home prices by making mortgages more expensive and reducing buyer demand.
Looking ahead, predictive models suggest that average home prices in Pendleton may continue to experience modest decreases or stabilize over the next five years, influenced by the current high interest rate environment. However, as the neighborhood continues to develop and attract new residents, there could be potential for renewed growth in property values. Average rent prices are projected to maintain an upward trajectory, albeit at a slower pace than seen in previous years, potentially reaching around $1,400-$1,500 by 2029.
In summary, Pendleton has undergone a transformation characterized by increasing homeownership rates, substantial growth in average home prices, and rising average rents. The neighborhood has demonstrated resilience in the face of changing economic conditions, maintaining its appeal to both homeowners and renters. The recent cooling of the housing market, influenced by higher interest rates, presents a new phase in Pendleton's real estate evolution, potentially offering opportunities for both buyers and investors in the coming years.
