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South Broadway's Home Values Soar as Ownership Rates Decline: A Decade of Housing Market Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
South Broadway, a vibrant neighborhood in Cleveland, Ohio, has experienced significant changes in its housing market over the past decade. This area, known for its diverse community and rich history, has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends and local market dynamics. The homeownership rate in South Broadway has shown a gradual decline from 2013 to 2022. In 2013, 52% of residents were homeowners, but by 2022, this figure had decreased to 45%. This shift coincided with significant changes in average home prices. In 2013, the average home price was $27,307, which rose dramatically to $65,818 by 2022, representing a 141% increase over nine years.
The relationship between federal interest rates and homeownership rates in South Broadway follows a general trend observed nationally. As interest rates remained low from 2013 to 2016, hovering around 0.1% to 0.4%, homeownership rates stayed relatively stable at around 47-48%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined slightly to 45%. This suggests that higher interest rates may have contributed to making homeownership less affordable for some residents.
Conversely, the percentage of renters in South Broadway increased from 48% in 2013 to 55% in 2022. This rise in renters coincided with an overall increase in average rent prices. In 2013, the average rent was $781, which fluctuated over the years but ultimately reached $780 in 2022. Despite this minimal change in rent prices over the decade, the increase in the renter population suggests a growing demand for rental properties in the area.
In 2023 and 2024, South Broadway experienced some notable changes in the housing market. The average home price decreased slightly from $65,818 in 2022 to $61,293 in 2023, before rebounding to $65,597 in 2024. This rebound occurred despite a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates in the neighborhood.
Looking ahead, predictive models suggest that average home prices in South Broadway may continue to rise moderately over the next five years, potentially reaching around $75,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $850 per month within the same timeframe. These projections are based on current trends and economic indicators but are subject to change based on various factors.
In summary, South Broadway has witnessed a shift towards a renter-majority population over the past decade, accompanied by substantial increases in average home prices. Despite fluctuations in the housing market and rising interest rates, the neighborhood continues to show resilience and adaptability. The coming years may bring further changes to the housing landscape in South Broadway, with potential opportunities and challenges for both homeowners and renters.
