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McKeesport's Housing Market: Rising Home Values Amidst Ownership Decline
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
McKeesport, Pennsylvania, a city with a rich industrial heritage in Allegheny County, has experienced significant changes in its housing market over the past decade. These changes are characterized by declining homeownership rates, rising average home prices, and fluctuating average rent prices. The city's housing dynamics have been shaped by various factors, including economic conditions, population changes, and federal interest rates.
The homeownership rate in McKeesport has shown a gradual decline from 2013 to 2022. In 2013, 53% of housing units were owner-occupied, but this percentage decreased to 50% by 2022, with a brief dip to 48% in 2021. Conversely, average home prices have demonstrated a substantial upward trend. The average home price rose from $45,184 in 2013 to $91,308 in 2022, representing a remarkable increase of 102% over this period. The most significant jump occurred between 2020 and 2021, when average home prices surged from $65,012 to $84,265, a 29.6% increase in just one year.
Federal interest rates have played a role in shaping homeownership trends in McKeesport. From 2013 to 2020, interest rates remained relatively low, ranging between 0.09% and 2.16%. During this period, homeownership rates remained relatively stable, fluctuating between 50% and 53%. However, as interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), homeownership rates showed signs of decline, dropping to 50% in 2022.
Renter percentages in McKeesport have inversely mirrored the homeownership trend, increasing from 47% in 2013 to 50% in 2022. Average rent prices have shown more volatility compared to home prices. The average rent was $691 in 2013, decreased slightly to $668 in 2015, then rose to $729 in 2020. The highest average rent was recorded in 2021 at $759, before dropping to $702 in 2022. This fluctuation in rent prices occurred against a backdrop of declining population, which decreased from 19,742 in 2013 to 17,749 in 2022.
In 2023, the average home price in McKeesport slightly decreased to $89,143 from the 2022 figure of $91,308. However, 2024 has seen a rebound, with average home prices increasing to $91,925. This recent uptick occurs alongside a federal interest rate of 5.33% in 2024, which is significantly higher than the rates observed in the previous decade.
Looking ahead, predictive models suggest that average home prices in McKeesport may continue their upward trajectory over the next five years, potentially reaching around $105,000 by 2029. This projection is based on the historical trend of increasing home values despite fluctuations in the local economy and population. Average rent prices are also expected to rise, albeit more modestly, potentially reaching approximately $780 by 2029. These predictions take into account the city's ongoing economic challenges and demographic shifts.
In summary, McKeesport has experienced a shift towards a more renter-dominated housing market over the past decade, with homeownership rates declining and renter percentages increasing. Despite a decreasing population, average home prices have shown significant growth, particularly in recent years. Average rent prices have been more volatile but generally trend upwards. The interplay between federal interest rates, local economic conditions, and demographic changes continues to shape McKeesport's housing market dynamics, with predictions suggesting continued growth in both home prices and rents in the coming years.
