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Rising Home Values and Changing Ownership in Upper Hill, Pittsburgh: A Decade of Real Estate Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Upper Hill, a neighborhood in Pittsburgh, Pennsylvania, has experienced significant changes in its real estate market and demographics over the past decade. This analysis focuses on the interplay between homeownership rates, average home prices, and other economic factors that have shaped the area's housing landscape. From 2013 to 2022, Upper Hill witnessed notable fluctuations in homeownership rates and housing prices. In 2013, the homeownership rate was 53% with average home prices at $66,548. By 2018, both figures had increased significantly, with homeownership reaching 64% and average home prices rising to $105,359. However, this trend did not continue uniformly. In 2022, despite average home prices climbing to $142,959, the homeownership rate had decreased to 52%, suggesting that rising prices may have begun to affect affordability for potential buyers.
Federal interest rates appear to have played a role in homeownership trends in Upper Hill. The period from 2013 to 2018, when homeownership rates increased from 53% to 64%, coincided with relatively low federal interest rates ranging from 0.11% to 1.83%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise more sharply after 2021, reaching 1.68% in 2022, the homeownership rate in Upper Hill declined to 52%, potentially reflecting the increased cost of mortgages.
The rental market in Upper Hill has also shown interesting dynamics. In 2013, 47% of residents were renters, with an average rent of $982. As the renter percentage decreased to 36% in 2018, average rent also fell to $663, suggesting a possible oversupply of rental units. By 2022, the renter percentage increased to 48%, and average rent rose to $867, indicating a potential increase in demand for rentals. These fluctuations may be influenced by changes in the neighborhood's population, which varied from 2,014 in 2013 to 1,980 in 2022.
Recent data shows that average home prices in Upper Hill decreased slightly from $142,959 in 2022 to $134,387 in 2023, before showing a modest increase to $136,570 in 2024. This occurred as federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and buyer demand in the neighborhood.
Looking ahead, predictive models forecast that average home prices in Upper Hill are expected to continue a moderate upward trajectory, potentially reaching around $150,000 by 2029. Average rent prices are projected to follow a similar pattern, possibly increasing to approximately $950 per month over the same period. These predictions assume relatively stable economic conditions and continued demand for housing in the area.
In conclusion, Upper Hill has experienced significant shifts in homeownership rates and housing prices over the past decade. The neighborhood has seen a general trend of increasing home values, although recent years have shown some volatility. Rental markets have fluctuated, with recent trends suggesting increasing demand and prices. The interplay between federal interest rates, housing affordability, and demographic changes continues to shape the real estate landscape in Upper Hill, presenting both opportunities and challenges for residents and potential investors.
