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Zip Code 15224: Rising Home Values and Stable Ownership in Pittsburgh's Compact Urban Area
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 15224, located in Pittsburgh, Pennsylvania, encompasses a 1 square mile urban neighborhood that has witnessed significant changes in its housing market over the past decade. This area has experienced a general trend of increasing average home prices and rent prices, while homeownership rates have remained relatively stable with minor fluctuations. The homeownership rate in zip code 15224 has maintained relative stability between 2013 and 2022, fluctuating between 35% and 39%. Despite this consistency, average home prices have shown a remarkable upward trend. In 2013, the average home price was $98,211, which steadily increased to $239,498 by 2022, representing a substantial 144% increase over this period. This trend indicates that while the proportion of homeowners has not changed dramatically, the value of homes in the area has appreciated considerably.
Federal interest rates have influenced homeownership trends in zip code 15224. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained stable at around 39%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight decrease in homeownership to 37% by 2019. Interestingly, despite the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%), homeownership only rebounded slightly to 39% in 2021, suggesting other factors beyond interest rates were influencing homeownership decisions in this area.
Renter percentages in zip code 15224 have shown slight fluctuations, ranging from 60% to 65% between 2013 and 2022. The average rent prices have steadily increased during this period, rising from $847 in 2013 to $1,004 in 2022, an 18.5% increase. The population has remained relatively stable, fluctuating between 10,144 and 10,915 residents. The consistent increase in average rent prices, despite relatively stable renter percentages and population, suggests a growing demand for rental properties in this area or overall market appreciation.
In 2023, the average home price in zip code 15224 reached $246,017, continuing the upward trend observed in previous years. This represents a 2.7% increase from 2022. Moving into 2024, the average home price has further increased to $263,016, a significant 6.9% jump from 2023. Notably, federal interest rates have also risen substantially, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and home price appreciation in the area.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in both average home prices and average rent prices for zip code 15224. Based on historical data and current market conditions, average home prices are projected to reach approximately $310,000 by 2029. Average rent prices are expected to increase to around $1,200 per month in the same timeframe. These projections assume a continuation of current economic conditions and housing market trends.
In conclusion, zip code 15224 has demonstrated remarkable resilience in its housing market. The most significant discoveries include the substantial appreciation in average home prices, which more than doubled from 2013 to 2022, and the steady increase in average rent prices. Despite fluctuations in federal interest rates, homeownership rates have remained relatively stable, suggesting the influence of other local factors on housing decisions. The area's consistent population and the recent sharp increases in both home prices and interest rates in 2023 and 2024 indicate a robust and dynamic real estate market. Looking ahead, continued growth in both home values and rent prices is anticipated, reflecting the ongoing attractiveness of this Pittsburgh neighborhood to both homeowners and renters.
