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Average Home Values and Ownership in Zip Code 15220: A Decade of Change in Pittsburgh's Real Estate
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 15220, located in Pittsburgh, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a general trend of decreasing homeownership and increasing average home and rent prices, reflecting broader economic changes in the region. The homeownership rate in zip code 15220 has shown a gradual decline from 2013 to 2022. In 2013, 63% of housing units were owner-occupied, but by 2022, this figure had decreased to 59%. This decline coincided with a significant increase in average home prices. In 2013, the average home price was $127,051, and by 2022, it had risen to $219,570, representing a 72.8% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 15220. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable at around 63-65%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 59%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging home purchases.
The renter population in zip code 15220 has increased as homeownership has declined. In 2013, 37% of housing units were renter-occupied, and this percentage grew to 41% by 2022. Concurrently, average rent prices have risen, albeit with some fluctuations. In 2013, the average rent was $923, and it increased to $977 by 2022, representing a 5.9% increase. The growth in the renter population, combined with rising rent prices, suggests a shifting housing market in the area, possibly driven by factors such as changing demographics or economic conditions.
In 2023 and 2024, the housing market in zip code 15220 continued to evolve. The average home price reached $221,989 in 2023 and further increased to $232,286 in 2024, representing a 4.6% year-over-year increase. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These high interest rates would typically be expected to cool the housing market, yet prices continued to rise, indicating strong demand or limited housing supply in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential 5-year trends for average home and rent prices in zip code 15220. If the current trajectory continues, average home prices could potentially reach around $275,000 to $300,000 by 2029. Average rent prices, which have shown more modest growth, might increase to approximately $1,100 to $1,200 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 15220 has experienced a gradual shift towards a higher proportion of renters, coupled with substantial increases in average home prices and more moderate growth in rent prices. The interplay between federal interest rates, housing affordability, and changing demographics has shaped these trends. As the area continues to evolve, balancing housing affordability with market demands will likely remain a key challenge for this Pittsburgh neighborhood.
