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Pittsburgh Zip Code 15232: Rising Home Values and Persistent Renter Majority
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
Pittsburgh's zip code 15232 presents an intriguing snapshot of urban housing dynamics. This area has experienced significant fluctuations in ownership rates and substantial increases in both average home prices and average rent prices over the past decade. The zip code has maintained a consistent trend of renter-majority occupancy, with homeownership rates hovering around 25-30%.
The relationship between homeownership rates and average home prices in 15232 reveals an interesting pattern. Despite the average home price rising steadily from $279,147 in 2010 to $466,843 in 2022, a 67% increase, the homeownership rate only slightly increased from 25% in 2014 to 29% in 2022. This suggests that rising home prices have not significantly deterred homeownership in the area, possibly due to other factors such as neighborhood desirability or economic opportunities.
Federal interest rates have played a role in homeownership trends in 15232. The period of historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.4%, coincided with a slight increase in homeownership from 25% to 29%. This aligns with the general trend of lower interest rates encouraging homeownership. However, the modest increase suggests that other local factors, such as high home prices or a preference for renting, may have tempered the impact of low interest rates on homeownership in this particular zip code.
Renter percentages and average rent prices in 15232 demonstrate a strong correlation. As the renter-occupied percentage remained high, fluctuating between 70% and 75% from 2013 to 2022, average rent prices steadily increased. The average rent rose from $941 in 2013 to $1,393 in 2022, a 48% increase. This upward trend in rent prices, coupled with a consistently high renter population, suggests a strong demand for rental properties in the area, possibly driven by factors such as job opportunities or the presence of educational institutions.
In 2023 and 2024, the average home prices in 15232 continued to rise, reaching $471,452 in 2023 and $493,810 in 2024. This represents a 5.8% increase from 2022 to 2024. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial shift from the low-interest environment of previous years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in 15232 will continue to increase, potentially reaching around $550,000 by 2029. Average rent prices are also expected to rise, potentially surpassing $1,600 per month within the same timeframe. These projections are based on the historical growth rates observed in the data and assume a continuation of current economic conditions.
In summary, zip code 15232 in Pittsburgh exhibits a compelling housing market characterized by steadily increasing average home and rent prices, alongside a persistent renter-majority population. The area has shown resilience in maintaining a stable, albeit minority, homeownership rate despite significant property value appreciation. The coming years are likely to see continued growth in both home values and rental costs, potentially reshaping the demographic makeup of this urban neighborhood.
