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Zip Code 15112: Rising Home Values and Shifting Ownership Patterns in East Pittsburgh
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 15112, located in East Pittsburgh, Pennsylvania, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 15112 has shown a general decline from 2013 to 2022. In 2013, 54% of housing units were owner-occupied, but by 2022, this figure had dropped to 44%. This decrease in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $54,706, which rose dramatically to $100,926 by 2022, representing an 84.5% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 15112. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), the homeownership rate remained relatively stable, fluctuating between 48% and 54%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate declined from 46% to 48%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The rental market in zip code 15112 has shown an opposite trend to homeownership. The percentage of renter-occupied units increased from 46% in 2013 to 56% in 2022. This shift towards renting coincided with an overall increase in average rent prices. In 2013, the average rent was $621, which rose to $690 by 2022, representing an 11.1% increase. However, it's worth noting that rent prices have not increased as dramatically as home prices, potentially making renting a more attractive option for some residents. The population in the zip code has fluctuated over this period, decreasing from 3,738 in 2013 to 3,490 in 2022, which may have influenced the demand for rental properties.
Looking at the most recent data, the average home price in zip code 15112 for 2023 was $98,183, showing a slight decrease from 2022. However, in 2024, the average home price has rebounded to $103,071, indicating continued growth in the housing market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 15112 will continue to rise, albeit at a more moderate pace. Based on historical data and current economic conditions, we project that average home prices could reach approximately $120,000 to $130,000 by 2029. For average rent prices, we expect a steady increase, potentially reaching $750 to $800 per month by 2029, assuming current economic conditions and local market factors remain relatively stable.
In summary, zip code 15112 has experienced a shift from homeownership to renting over the past decade, driven by rapidly increasing home prices and fluctuating interest rates. The area has seen substantial growth in property values, with average home prices nearly doubling from 2013 to 2024. While rent prices have also increased, the rise has been less dramatic, potentially contributing to the growing preference for renting in the area. As the housing market continues to evolve, these trends will likely shape the future of housing in East Pittsburgh.
