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Perry North: Rising Home Values and Stable Ownership in a Pittsburgh 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
Perry North, a neighborhood in Pittsburgh, Pennsylvania, has demonstrated remarkable stability in homeownership rates while experiencing significant growth in home values over the past decade. This area has consistently maintained a high percentage of owner-occupied homes, exceeding 70% throughout the observed period. The interplay between homeownership rates, average home prices, and rent trends provides insight into the neighborhood's real estate dynamics. From 2013 to 2022, Perry North's homeownership rate remained relatively stable, with only minor fluctuations. In 2013, the rate stood at 75%, slightly decreasing to 73% by 2022. Despite this marginal decline, the average home prices in the area saw substantial growth. The average home price rose from $74,830 in 2013 to $154,604 in 2022, marking an impressive 106.6% increase over nine years. This significant appreciation in home values did not appear to negatively impact homeownership rates, suggesting a robust local housing market and sustained demand for property ownership in Perry North. The influence of federal interest rates on homeownership trends in Perry North is noteworthy. During the period of exceptionally low interest rates from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates held steady at around 72%. As interest rates began to climb more substantially from 2017 (1%) to 2019 (2.16%), there was a slight uptick in homeownership to 74% in 2018. This increase may be attributed to potential buyers accelerating their purchase decisions to secure mortgages before rates rose further. The subsequent sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with an increase in homeownership to 75%, aligning with the general trend of lower interest rates encouraging home purchases.
Renter percentages in Perry North have shown only minor fluctuations, ranging from 25% to 29% between 2013 and 2022. Average rent prices generally increased during this period, albeit with some volatility. Starting at $797 in 2013, average rent reached a peak of $1,177 in 2017, representing a 47.7% increase. However, rent prices subsequently declined, reaching $966 by 2022. This figure represents a 17.9% decrease from the 2017 peak but remains 21.2% higher than 2013 levels. The population of Perry North decreased from 6,115 in 2013 to 5,652 in 2022, potentially influencing rental market dynamics. In 2023, the average home price in Perry North experienced a slight decrease to $154,585, a marginal 0.01% drop from the previous year. However, 2024 saw a rebound with average home prices rising to $164,352, marking a 6.3% increase from 2023. This growth occurred despite federal interest rates reaching 5.33% in 2024, the highest level since 2007, indicating strong underlying demand in the local housing market. Looking ahead, predictive models suggest that average home prices in Perry North may continue to rise over the next five years, potentially reaching around $185,000 by 2029. This projection is based on the historical growth rate and assumes continued demand in the area. Average rent prices are expected to stabilize and potentially increase moderately, possibly reaching around $1,100 by 2029, reflecting a balance between housing demand and local economic factors. In conclusion, Perry North has exhibited a robust housing market characterized by steadily increasing average home prices and a stable, high rate of homeownership. The neighborhood has demonstrated resilience to interest rate fluctuations and maintained a consistent ownership-to-rental ratio. The recent uptick in average home prices, despite high interest rates, suggests ongoing attractiveness of the area to homebuyers. These trends indicate a potentially promising outlook for Perry North's real estate market in the coming years.
