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University District's Housing Boom: Average Home Values Soar Amidst Stable Rental Dominance
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The University District in Cleveland, Ohio, has experienced significant changes in its housing market over the past decade. From 2013 to 2022, homeownership rates in the area remained relatively stable, fluctuating between 22% and 26%. Despite this stability in ownership, average home prices saw a substantial increase of 81.7%, rising from $136,912 in 2013 to $248,805 in 2022. This dramatic rise in home values did not directly correlate with increased homeownership rates, indicating the influence of other factors on the local housing market.
The relationship between federal interest rates and homeownership rates in the University District revealed interesting patterns. In 2013, with interest rates at 0.11%, the homeownership rate was 22%. As interest rates increased to 2.16% by 2019, homeownership rates slightly increased to 25%. However, when interest rates dropped to 0.08% in 2021, homeownership remained at 23%. This suggests that while interest rates play a role, local market conditions and other factors significantly influence homeownership trends in this neighborhood.
Renter occupancy has consistently dominated the housing situation in the University District. The percentage of renter-occupied units remained stable at 77% from 2013 to 2022, with minor fluctuations in between. Average rent prices showed a consistent upward trend, increasing by 37.5% from $750 in 2013 to $1,031 in 2022. This rise in rent prices occurred despite relatively stable population levels, ranging from 10,926 in 2013 to 11,780 in 2022, indicating that factors beyond population growth were driving rent increases.
Recent data shows that the average home price in the University District continued to rise, reaching $251,399 in 2023 and further increasing to $266,637 in 2024, representing a 7.2% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in the University District will continue to rise, potentially reaching around $300,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,300 per month within the same timeframe. These projections assume that current economic conditions and local market factors remain relatively stable.
In summary, the University District has experienced substantial growth in both average home prices and average rent prices over the past decade, despite relatively stable homeownership rates. The neighborhood's desirability, coupled with broader economic trends, has driven these increases. As we move forward, the interplay between rising home values, increasing rent prices, and fluctuating interest rates will likely continue to shape the housing landscape in this dynamic Cleveland neighborhood.
