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Average Home Values and Ownership Trends in Pittsburgh's 15222 Zip Code: A Decade of Urban Real Estate Dynamics
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 15222, located in Pittsburgh, Pennsylvania, covers an urban area of 1.2 square miles. This area has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. The overall trend shows a decrease in homeownership, coupled with increases in both average home prices and average rent prices.
The homeownership rate in zip code 15222 has steadily declined from 28% in 2013 to 17% in 2022. During this same period, average home prices have shown a consistent upward trend. In 2013, the average home price was $341,785, which increased to $490,923 by 2022, representing a substantial 43.6% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for residents in this area.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership rates in the zip code decreased from 28% to 23%. This counterintuitive trend suggests that other factors, such as rapidly increasing home prices, may have outweighed the potential benefits of low interest rates for potential homebuyers in this area.
As homeownership declined, the percentage of renters in zip code 15222 increased from 72% in 2013 to 83% in 2022. Correspondingly, average rent prices also rose during this period. In 2013, the average rent was $1,477, which increased to $1,504 by 2022, a modest 1.8% increase. However, it's worth noting that average rent prices peaked at $1,638 in 2016 before slightly decreasing. The population growth from 3,754 in 2013 to 5,401 in 2022 likely contributed to the increased demand for rental properties and the overall upward pressure on rent prices.
Looking at more recent data, the average home price in zip code 15222 decreased slightly from $490,923 in 2022 to $472,288 in 2023, a 3.8% decrease. However, in 2024, there was a marginal increase to $472,475. Interestingly, federal interest rates rose significantly from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. This sharp increase in interest rates may have contributed to the stabilization of home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 15222 will continue to show moderate growth, potentially reaching around $520,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially increasing to approximately $1,650 by 2029. These predictions are based on historical trends and current economic conditions.
In summary, zip code 15222 has experienced a significant shift towards a renter-dominated market over the past decade, with homeownership rates dropping by 11 percentage points. Despite this trend, average home prices have increased substantially, while average rent prices have shown more modest growth. The recent stabilization of home prices, coupled with rising interest rates, suggests a potential cooling of the housing market in this area. However, the continued population growth and high rental demand indicate that both the rental and housing markets in this Pittsburgh zip code remain dynamic and subject to ongoing changes.
