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Average Home Values and Ownership in Zip Code 15211: A Decade of Change in Pittsburgh's Housing Market
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 15211, located in Pittsburgh, Pennsylvania, has experienced significant shifts in its housing market over the past decade. This urban area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 15211 has shown a slight downward trend over the years. In 2013, the area had a homeownership rate of 48%, which remained relatively stable until 2016 when it dipped to 46%. By 2022, the rate had recovered slightly to 47%. This trend correlates interestingly with the average home prices in the area. In 2013, the average home price was $99,806, which steadily increased to $218,158 by 2022, representing a substantial 118.6% increase over this period. This significant rise in home prices may have contributed to the slight decrease in homeownership rates, as higher prices could have made homeownership less attainable for some residents.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, in 2013, when interest rates were at a low 0.11%, the homeownership rate was 48%. As interest rates began to rise, reaching 1.83% in 2018, the homeownership rate remained stable at 48%. However, by 2022, with interest rates at 1.68%, the homeownership rate had slightly decreased to 47%. This suggests that while lower interest rates generally encourage homeownership, other factors such as rising home prices may have offset this effect in zip code 15211.
Renter percentages in the area have shown a corresponding upward trend as homeownership rates decreased. In 2013, 52% of residents were renters, which increased to 54% by 2016, before settling back to 53% in 2022. Average rent prices have also seen an upward trend, rising from $1,017 in 2013 to $1,028 in 2022, a modest 1.1% increase. It's worth noting that despite the increase in renter percentages, the population in the zip code decreased from 10,424 in 2013 to 10,211 in 2022, which may have helped keep rent increases relatively modest compared to home price increases.
Looking at the most recent data, the average home price in zip code 15211 slightly decreased to $217,749 in 2023 but is projected to rise to $222,974 in 2024. This occurs against the backdrop of significantly higher interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact homebuying activity in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 15211 will continue to rise, albeit at a slower pace due to higher interest rates. We project average home prices could reach approximately $250,000 by 2029. Average rent prices are expected to increase more substantially over the next five years, potentially reaching around $1,200 per month by 2029, as demand for rentals may increase if homeownership becomes less affordable due to higher home prices and interest rates.
In summary, zip code 15211 has experienced a significant increase in average home prices over the past decade, with a slight decrease in homeownership rates. Renter percentages have increased marginally, while average rent prices have seen modest growth. The area's housing market appears to be influenced by broader economic factors such as interest rates and local population changes. Looking forward, we expect continued growth in both home prices and rent prices, with rental demand potentially strengthening if homeownership becomes less attainable due to market conditions.
