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Average Home Values and Ownership in Zip Code 15101: A Decade of Change in Allison Park, Pennsylvania
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
Zip code 15101, located in Allison Park, Pennsylvania, presents an intriguing case study of homeownership and rental trends. This suburban area has experienced notable shifts in its housing market over the past decade, with changes in ownership percentages, average home prices, and average rent prices reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 15101 has shown a gradual decline from 2013 to 2022. In 2013, 85% of residents were homeowners, but by 2022, this figure had decreased to 78%. This 7 percentage point drop coincided with a significant increase in average home prices. In 2013, the average home price was $207,746, and by 2022, it had risen to $338,968, representing a substantial 63.2% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, interest rates remained extremely low, hovering between 0.09% and 0.40%. During this period, homeownership rates remained relatively stable, only dropping slightly from 85% to 82%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates continued to decline, reaching 79% by 2019. The sharp drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) did not immediately reverse the homeownership decline, possibly due to economic uncertainties during the COVID-19 pandemic.
As homeownership rates declined, the percentage of renters in zip code 15101 naturally increased. In 2013, only 15% of residents were renters, but by 2022, this had grown to 22%. Interestingly, average rent prices did not show a consistent upward trend during this period. In 2013, the average rent was $983, and it peaked at $1,123 in 2016 before fluctuating and settling at $1,024 in 2022. This relatively modest 4.2% increase in average rent over nine years, despite the growing renter population, suggests that the rental market in this area has remained relatively stable and affordable compared to the rapidly appreciating home prices.
Looking at the most recent data, the average home price in zip code 15101 continued to rise, reaching $350,141 in 2023 and $360,706 in 2024. This represents a 3.3% increase from 2023 to 2024, indicating ongoing appreciation in the housing market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may put pressure on homeownership rates in the coming years as mortgages become more expensive.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 15101 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $425,000 to $450,000, assuming a conservative annual appreciation rate of 3-4%. Average rent prices are likely to see more modest increases, potentially reaching $1,150 to $1,200 by 2029, reflecting a 2-3% annual growth rate.
In summary, zip code 15101 has experienced a gradual shift from homeownership to renting over the past decade, driven by rapidly appreciating home prices and fluctuating interest rates. Despite this trend, the area has maintained a high rate of homeownership at 78% as of 2022. The rental market has remained relatively stable, with modest increases in average rent prices. Looking forward, the housing market in this zip code is likely to continue evolving, with home prices expected to rise further, potentially impacting homeownership rates, while the rental market may see gradual growth in both demand and prices.
