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Average Home Values and Ownership in Zip Code 16112: A Decade of Growth in Bessemer
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 16112, located in Bessemer, Pennsylvania, has experienced significant shifts in its housing market over the past decade. This small community has seen notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
The homeownership rate in zip code 16112 has shown a general upward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 81%, which increased to 89% by 2020, the highest point in the dataset. However, there was a slight decrease to 83% by 2022. Concurrently, average home prices have steadily increased. In 2014, the average home price was $82,359, which rose to $124,099 by 2022, representing a substantial 50.7% increase over eight years.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. Despite historically low interest rates from 2014 to 2021 (ranging from 0.08% to 1.83%), homeownership rates fluctuated but generally increased. This suggests that factors beyond interest rates, such as local economic conditions or housing availability, may have played a significant role in homeownership trends in this area.
Renter percentages in zip code 16112 have generally decreased as homeownership increased. In 2013, renters made up 19% of occupied housing units, which decreased to 11% by 2020, before rising slightly to 17% in 2022. Average rent prices, however, have shown an overall upward trend. In 2013, the average rent was $600, which increased to $774 by 2022, a 29% increase. Interestingly, there was a peak in average rent at $867 in 2018 and 2019, followed by a decline in subsequent years.
Looking at the most recent data, the average home price in zip code 16112 continued to rise, reaching $128,248 in 2023 and $131,214 in 2024. This represents a further 5.7% increase from 2022 to 2024. Concurrently, federal interest rates have significantly increased, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 16112 to continue their upward trajectory, potentially reaching around $150,000 by 2029. This projection is based on the consistent growth observed over the past decade. For average rent prices, the forecast suggests a more moderate increase, potentially reaching approximately $850 by 2029, considering the fluctuations seen in recent years.
In summary, zip code 16112 has experienced a notable increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in renter percentages. The area has shown resilience in maintaining high homeownership rates despite recent increases in interest rates. The continued rise in both average home prices and average rent prices suggests a strengthening housing market in this Pennsylvania borough, potentially driven by local economic factors and housing demand.
