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Upper Lawrenceville: Rising Home Values and Shifting Ownership in Pittsburgh's Dynamic 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
Upper Lawrenceville, a neighborhood in Pittsburgh, Pennsylvania, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates, coupled with substantial increases in both average home prices and average rent prices. The neighborhood's dynamic real estate landscape reflects broader economic trends and local development patterns.
The relationship between homeownership rates and average home prices in Upper Lawrenceville reveals an interesting pattern. In 2013, the neighborhood had a 59% homeownership rate, with average home prices at $76,621. As average home prices steadily increased, reaching $281,416 by 2022, the homeownership rate fluctuated but ultimately decreased to 56%. This trend suggests that rising home prices may have made homeownership less accessible for some residents. For instance, between 2015 and 2016, as average home prices jumped from $121,627 to $155,966, the homeownership rate dropped from 46% to 43%.
Federal interest rates have played a role in shaping homeownership trends in Upper Lawrenceville. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates in the neighborhood decreased from 59% to 43%, contrary to the typical expectation that lower interest rates encourage homeownership. This suggests that other factors, such as rapidly increasing home prices, may have outweighed the potential benefits of low interest rates for potential buyers in the area.
Renter percentages and average rent prices in Upper Lawrenceville have shown a correlation over time. In 2013, the renter-occupied percentage was 40%, with an average rent of $996. As the renter percentage increased to 57% in 2016, average rent rose to $968. However, by 2022, the renter percentage decreased to 44%, while average rent reached $1,155. This trend indicates that as rental demand fluctuated, average rent prices generally increased, with some variations. The population changes, from 2,892 in 2013 to 2,497 in 2022, may have influenced these rental market dynamics.
In 2023 and 2024, Upper Lawrenceville continued to see growth in average home prices. The average home price in 2023 was $288,199, increasing to $298,174 in 2024. This represents a 3.46% increase year-over-year. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homebuying trends in the neighborhood.
Looking ahead, predictive models suggest that Upper Lawrenceville may continue to see increases in both average home prices and average rent prices over the next five years. Based on historical trends, average home prices could potentially reach around $330,000 by 2029, while average rent prices might approach $1,600 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, Upper Lawrenceville has experienced a complex interplay between homeownership rates, average home prices, and rental market dynamics. The neighborhood has seen substantial appreciation in property values, with average home prices more than quadrupling from 2013 to 2024. Despite fluctuations, the area maintains a relatively balanced mix of homeowners and renters. The recent rise in interest rates, coupled with increasing home prices, may present challenges for future homebuyers, potentially influencing the continued evolution of Upper Lawrenceville's housing market.
