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Perry South: Rising Home Values and Ownership Amid Market Fluctuations
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 South, a Pittsburgh Neighborhood, Experiences Housing Market Resurgence Perry South, a neighborhood in Pittsburgh, Pennsylvania, has undergone significant changes in its housing market over the past decade. This urban community has witnessed fluctuations in homeownership rates, accompanied by notable increases in both average home prices and average rent prices. The area's housing dynamics reflect the complex interplay of local and national economic factors.
Homeownership rates in Perry South have shown considerable variability. In 2013, the neighborhood had a 55% homeownership rate. This figure decreased to 45% by 2017, indicating a shift towards more rental occupancy. However, the trend reversed in recent years, with homeownership rising to 60% in 2022. This fluctuation in ownership rates corresponds with changes in average home prices. In 2013, the average home price was $37,119. As homeownership declined, average home prices increased, reaching $57,913 in 2017. The subsequent rise in homeownership coincided with a substantial increase in average home prices, which reached $104,418 by 2022.
Federal interest rates have influenced these homeownership trends. From 2013 to 2016, interest rates remained low, ranging from 0.09% to 0.4%. During this period, homeownership in Perry South decreased, possibly due to other local economic factors outweighing the benefits of low interest rates. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates in the neighborhood stabilized and then increased. This trend continued even as interest rates dropped again in 2020 and 2021, suggesting that local market factors may have had a stronger influence on homeownership than national interest rates in this particular neighborhood.
Renter percentages in Perry South have mirrored the inverse of homeownership trends. The proportion of renters increased from 45% in 2013 to a peak of 55% in 2017, before declining to 40% in 2022. Average rent prices have generally trended upward during this period. In 2013, the average rent was $703 per month. Despite fluctuations, such as a drop to $624 in 2014, the overall trend has been upward. By 2022, the average rent had risen to $890, representing a 26.6% increase over the 2013 figure. This increase in rent prices occurred even as the renter population decreased in recent years, possibly indicating growing demand for rental properties in the area.
In 2023 and 2024, Perry South's housing market showed some interesting developments. The average home price in 2023 was $92,910, representing a decrease from the 2022 figure. However, in 2024, the average home price rebounded to $103,523. This recovery occurred despite a significant increase in federal interest rates, which rose from 5.02% in 2023 to 5.33% in 2024. These higher interest rates might typically discourage home buying, but the rising prices suggest strong demand in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Perry South may continue to rise over the next five years, potentially reaching around $120,000 by 2029. This projection is based on the overall upward trend observed since 2013, despite some recent fluctuations. Average rent prices are also expected to increase, potentially surpassing $1,100 per month by 2029, continuing the steady upward trajectory seen in recent years.
In summary, Perry South has experienced a notable resurgence in homeownership rates in recent years, coupled with significant increases in both average home prices and average rent prices. Despite some short-term fluctuations, the long-term trends point towards a strengthening housing market in this Pittsburgh neighborhood. The interplay between homeownership rates, housing prices, and rental markets reflects the dynamic nature of urban development in Perry South.
