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Squirrel Hill South: Rising Home Values and Stable Ownership in Pittsburgh's Diverse Neighborhood
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
Squirrel Hill South, a vibrant neighborhood in Pittsburgh, Pennsylvania, has experienced significant changes in its housing market over the past decade. Known for its diverse community and strong educational institutions, this area has seen dynamic shifts in home values and ownership rates, reflecting broader economic trends and local market conditions. The homeownership rate in Squirrel Hill South has remained relatively stable, fluctuating between 43% and 45% from 2013 to 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $265,875, which steadily increased to $427,240 by 2022, representing a substantial 60.7% increase over nine years. This appreciation in home values has outpaced changes in homeownership rates, suggesting that while property values have risen significantly, it hasn't dramatically altered the balance between owners and renters in the neighborhood.
Federal interest rates have played a role in shaping homeownership trends in Squirrel Hill South. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates in the neighborhood remained steady around 43-44%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership to 45% by 2022, possibly due to buyers rushing to secure mortgages before rates climbed further.
Renter occupancy in Squirrel Hill South has consistently been higher than owner occupancy, ranging from 55% to 57% between 2013 and 2022. Average rent prices have also shown an upward trajectory, albeit with some fluctuations. In 2013, the average rent was $1,046, which increased to $1,199 by 2022, a 14.6% rise. The population of the neighborhood has fluctuated over this period, reaching a peak of 16,031 in 2015 before settling at 15,085 in 2022. These population changes, coupled with the consistent demand for rentals, have likely contributed to the steady increase in average rent prices.
In 2023, the average home price in Squirrel Hill South reached $429,170, a slight increase from 2022. This growth occurred despite a significant jump in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has continued to rise, reaching $441,139, while interest rates have further increased to 5.33%. This resilience in home prices, even in the face of higher borrowing costs, suggests strong underlying demand for housing in the neighborhood.
Looking ahead to the next five years, predictive models suggest that average home prices in Squirrel Hill South are likely to continue their upward trajectory, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand for rental properties in this desirable neighborhood. However, the rate of increase may be tempered by affordability concerns and potential new housing developments.
In summary, Squirrel Hill South has demonstrated a robust housing market over the past decade, with significant appreciation in home values and steady increases in rent prices. The neighborhood has maintained a relatively stable balance between owners and renters, despite economic fluctuations and changes in interest rates. The recent continuation of price growth, even in a high-interest rate environment, underscores the area's desirability and suggests a positive outlook for property values in the coming years.
