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Rising Home Values and Rental Dominance in Pittsburgh's Friendship Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Friendship, a vibrant Pittsburgh neighborhood, has experienced significant changes in housing dynamics over the past decade. This area, known for its mix of residential and commercial spaces, has seen notable shifts in homeownership rates, average home prices, and rental costs, reflecting broader economic trends and local market conditions. Homeownership rates in Friendship have shown considerable volatility between 2013 and 2022. Starting at 10% in 2013, the rate reached a peak of 19% in 2018 before returning to 10% by 2022. This fluctuation occurred alongside changes in average home prices. The average home price was $391,110 in 2013, rose to $401,531 by 2015, then experienced a gradual decline to $385,879 in 2019 before rebounding to $412,354 in 2022. This data suggests that while home prices have generally increased over time, the relationship between prices and homeownership rates in Friendship is complex. Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, interest rates remained exceptionally low, ranging from 0.1% to 0.4%. During this period, homeownership in Friendship increased from 10% to 15%. As interest rates began to rise more substantially from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Friendship became more volatile, peaking at 19% in 2018 before declining to 10% in 2022. This pattern indicates that while low interest rates initially encouraged homeownership, other factors likely influenced the subsequent decline despite rising interest rates.
The rental market in Friendship has demonstrated a clear trend of increasing average rents alongside a consistently high percentage of renters. In 2013, 90% of residents were renters, with the average rent at $704. By 2022, the renter percentage remained stable at 90%, but the average rent had increased significantly to $1,111, representing a 58% increase over nine years. This steady rise in rents occurred despite fluctuations in the neighborhood's population, which grew from 1,425 in 2013 to 2,011 in 2022, indicating strong demand for rental properties in the area.
Recent data shows that average home prices in Friendship continued to rise, reaching $419,124 in 2023 and $432,715 in 2024. This represents a 4.9% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the neighborhood.
Predictive models forecast that average home prices in Friendship will continue to appreciate over the next five years, potentially reaching around $475,000 by 2029. This projection is based on the historical growth rate and recent market dynamics. For average rent prices, the upward trend is expected to persist, potentially reaching approximately $1,350 per month by 2029, assuming a continuation of the current growth rate and sustained demand for rental properties in the area.
In conclusion, Friendship has experienced a complex interplay between homeownership rates, average home prices, and rental market dynamics over the past decade. The neighborhood has maintained a predominantly renter-occupied status, with steadily increasing average rents. While average home prices have generally trended upward with some fluctuations, homeownership rates have been more volatile. The recent sharp increase in interest rates, coupled with rising home prices, may continue to influence the balance between owning and renting in this Pittsburgh neighborhood in the coming years.
