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Pepper Pike, Ohio: Soaring Home Values and Ownership Rates in an Affluent Cleveland Suburb
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Pepper Pike, a charming city in Ohio, boasts a rich history and a strong sense of community. This affluent suburb of Cleveland has experienced consistent growth in population and homeownership rates over the years, accompanied by fluctuations in average home prices and average rent prices.
The ownership percentage in Pepper Pike has shown a steady increase from 94% in 2013 to 98% in 2022, indicating a strong preference for homeownership among residents. This trend aligns with the growth in average home prices, which rose from $382,635 in 2010 to $576,562 in 2022, representing a substantial 50.7% increase over 12 years. The most significant jump occurred between 2020 and 2021, with average home prices surging from $470,391 to $523,366, a 11.3% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in Pepper Pike. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the steady increase in homeownership rates. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, the homeownership rate continued to climb, suggesting a strong local housing market resilient to moderate interest rate increases.
The renter percentage in Pepper Pike has decreased from 4% in 2013 to 2% in 2022, reflecting the city's shift towards homeownership. Average rent prices have shown significant volatility, with notable fluctuations between 2013 and 2022. For instance, the average rent price jumped from $698 in 2014 to $1,260 in 2015, then peaked at $3,500 in 2017 and 2018, before settling at $1,412 in 2022. These fluctuations may be attributed to changes in the limited rental inventory and the city's growing population, which increased from 6,054 in 2010 to 6,778 in 2022.
In 2023, the average home price in Pepper Pike reached $597,729, representing a 3.7% increase from 2022. This growth continued into 2024, with average home prices rising to $625,148, a further 4.6% increase. Notably, federal interest rates also saw significant increases, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the housing market in Pepper Pike has demonstrated resilience, with continued price appreciation.
Looking ahead, based on historical trends and current market conditions, we can expect average home prices in Pepper Pike to continue their upward trajectory over the next five years. Projections suggest that by 2029, average home prices could reach approximately $750,000 to $800,000, assuming a conservative annual growth rate of 3-5%. Average rent prices are also anticipated to increase, potentially reaching $1,600 to $1,800 per month by 2029, given the limited rental inventory and growing population.
In summary, Pepper Pike has experienced a robust increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the renter population. The city's housing market has shown resilience in the face of rising interest rates, suggesting a strong local economy and high demand for housing in this desirable suburb. As the population continues to grow and housing inventory remains limited, both average home prices and average rent prices are expected to maintain their upward trends in the coming years.
