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Rising Home Values and Fluctuating Ownership in Arlington Heights: A Decade of Housing Market 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
Arlington Heights, a small residential neighborhood in Pittsburgh, Pennsylvania, has experienced significant changes in its housing market over the past decade. This analysis focuses on the fluctuations in homeownership rates, average home prices, and rent prices from 2013 to 2024. The neighborhood's proximity to downtown Pittsburgh adds to its appeal, influencing these housing market trends.
The relationship between homeownership rates and average home prices in Arlington Heights reveals an interesting pattern. In 2016, the average home price was $159,634, with a homeownership rate of 63%. As average home prices increased to $188,971 in 2019, the homeownership rate slightly decreased to 57%. This trend suggests that rising home prices may have made homeownership less accessible for some residents. However, by 2022, despite the average home price climbing to $282,464, the homeownership rate rebounded to 48%, indicating a complex interplay of factors influencing housing choices in the neighborhood.
Federal interest rates have played a role in shaping homeownership trends in Arlington Heights. From 2016 to 2019, interest rates gradually increased from 0.4% to 2.16%, during which time homeownership rates generally remained above 55%. Interestingly, when interest rates dropped significantly in 2020 to 0.38%, the homeownership rate also decreased to 42%. This unexpected trend may be attributed to other economic factors or local market conditions specific to Arlington Heights.
Renter percentages and average rent prices in Arlington Heights have shown notable fluctuations. In 2013, with 45% of residents renting, the average rent was $3,992. By 2018, as the renter percentage decreased to 37%, the average rent increased to $4,692, suggesting a potential correlation between lower rental demand and higher prices. However, a significant shift occurred in 2020, with the renter percentage jumping to 57% while the average rent dramatically decreased to $598. This substantial drop in average rent coincided with a period of economic uncertainty and may have attracted more renters to the area.
As of 2024, the average home price in Arlington Heights has reached $306,834, continuing the upward trend observed in recent years. This increase comes alongside a federal interest rate of 5.33% in 2024, which is significantly higher than the rates seen in the previous decade. The combination of rising home prices and higher interest rates may present challenges for potential homebuyers in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Arlington Heights are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices, which have shown volatility in recent years, may stabilize and gradually increase as the rental market adjusts to economic conditions and housing demand in the area.
In summary, Arlington Heights has experienced significant changes in its housing market over the past decade. The neighborhood has seen a general trend of increasing average home values, fluctuating homeownership rates, and volatile average rent prices. The interplay between these factors, along with broader economic conditions, will continue to shape the housing landscape of this Pittsburgh neighborhood in the coming years.
