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Zip Code 15216: Rising Home Values and Ownership Trends in Pittsburgh's Resilient Real Estate 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
In zip code 15216, located in Pittsburgh, Pennsylvania, we observe a dynamic real estate landscape characterized by shifting homeownership rates and fluctuating average home and rent prices. This area has seen a general trend of increasing homeownership over the past decade, accompanied by significant growth in average home values and rent prices.
The homeownership rate in zip code 15216 has shown a gradual increase from 57% in 2013 to 61% in 2022. This upward trend in ownership coincides with a substantial rise in average home prices, which grew from $111,354 in 2013 to $208,236 in 2022, representing an impressive 87% increase over this period. The most dramatic surge occurred between 2020 and 2021, with average home prices jumping from $172,962 to $198,914, a 15% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in this zip code. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1%, which likely contributed to the initial increase in homeownership from 57% to 58%. As interest rates began to rise gradually from 2016 onwards, reaching 2.16% in 2019, we still observed a steady increase in homeownership, suggesting other factors such as local economic conditions and housing market dynamics were also influential.
Renter percentages in zip code 15216 have correspondingly decreased from 43% in 2013 to 39% in 2022. Despite this decline, average rent prices have shown a consistent upward trend, rising from $873 in 2013 to $960 in 2022, an increase of about 10%. The most significant jump in average rent occurred between 2018 and 2019, increasing from $986 to $1,065. It's worth noting that while the renter population decreased, the overall population in the zip code also declined from 23,677 in 2013 to 22,903 in 2022, which may have contributed to the sustained increase in average rent prices despite lower demand.
Looking at the most recent data, average home prices in zip code 15216 slightly decreased from $208,236 in 2022 to $207,200 in 2023, marking a minor 0.5% dip. However, the trend reversed in 2024, with average home prices rising to $213,873, a 3.2% increase from 2023. Simultaneously, federal interest rates climbed significantly, reaching 5.02% in 2023 and further increasing to 5.33% in 2024, the highest levels seen in over a decade.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 15216 to continue their upward trajectory, potentially reaching around $240,000 by 2029. This projection is based on the historical growth rate and recent market dynamics. For average rent prices, the forecast suggests a more moderate increase, potentially reaching approximately $1,100 by 2029, assuming the current trends in population and housing demand persist.
In summary, zip code 15216 has experienced a notable shift towards increased homeownership over the past decade, accompanied by substantial growth in average home values. Despite a decreasing renter population, average rent prices have continued to rise, albeit at a slower pace than home prices. The recent uptick in federal interest rates and the slight fluctuation in home prices in 2023-2024 suggest a potentially more stabilizing market. However, the overall trend points towards continued growth in both home values and rent prices in this Pittsburgh neighborhood for the foreseeable future.
