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Zip Code 15204: Rising Home Values and Shifting Ownership in Pittsburgh's Resilient Housing Market
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 15204 presents an intriguing case study of housing dynamics in a mid-sized urban area. This neighborhood has experienced significant fluctuations in homeownership rates and property values over the past decade, reflecting broader economic trends and local market conditions. The area has seen a general decline in homeownership rates, coupled with a substantial increase in average home prices, particularly in recent years.
The homeownership rate in zip code 15204 has shown a gradual decline from 69% in 2013 to 63% in 2022. This trend coincides with a remarkable increase in average home prices, which rose from $50,674 in 2013 to $126,462 in 2022, representing a 149% increase over this period. The most dramatic rise occurred between 2020 and 2021, with average home prices jumping from $90,745 to $117,085, a 29% increase in just one year.
Federal interest rates have played a significant role in shaping homeownership trends in this area. The period from 2013 to 2015 saw relatively stable homeownership rates around 67-69%, coinciding with historically low interest rates below 0.15%. As interest rates began to rise from 2016 onwards, reaching 2.16% by 2019, homeownership rates declined to 61%. This inverse relationship demonstrates how higher interest rates can deter potential homebuyers, leading to decreased homeownership.
The renter population in zip code 15204 has increased from 31% in 2013 to 37% in 2022, reflecting the decline in homeownership. Interestingly, average rent prices have not shown a consistent upward trend despite this increase in demand. Average rent peaked at $1,012 in 2015 but has since fluctuated, reaching $838 in 2022. This suggests that other factors, such as local economic conditions or housing supply, may be influencing rent prices more strongly than demand alone.
In 2023 and 2024, the housing market in zip code 15204 showed signs of cooling, with average home prices decreasing slightly from $126,462 in 2022 to $122,382 in 2023, before rebounding to $129,042 in 2024. This occurred against a backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially dampening demand for home purchases.
Looking ahead, predictive models suggest that average home prices in zip code 15204 may continue to rise moderately over the next five years, potentially reaching around $150,000 by 2029. However, this growth rate is expected to be slower than the rapid increases seen in the early 2020s. Average rent prices are forecasted to stabilize and potentially increase slightly, possibly reaching $950-$1,000 per month by 2029, assuming economic conditions remain relatively stable.
In summary, zip code 15204 has experienced a shift towards a higher proportion of renters, coupled with substantial increases in average home prices over the past decade. The interplay between federal interest rates, local economic factors, and housing demand has shaped these trends. While homeownership has declined, the area has seen significant appreciation in property values, particularly in recent years. The future of this market will likely depend on broader economic conditions, interest rate movements, and local development initiatives.
