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Zip Code 15690: Rising Home Values and Shifting Ownership Trends in Vandergrift, Pennsylvania
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 15690, encompassing Vandergrift in Pennsylvania, presents an intriguing case study of housing market dynamics. This area has experienced significant shifts in homeownership rates, average home prices, and average rent prices over the past decade. The overall trend shows a gradual decrease in homeownership, coupled with fluctuating but generally increasing average home and rent prices.
The homeownership rate in zip code 15690 has seen a notable decline from 2013 to 2022. In 2013, 69% of residents owned their homes, but by 2022, this figure had dropped to 63%. This 6 percentage point decrease coincides with a substantial increase in average home prices. In 2013, the average home price was $65,987, which rose to $96,192 by 2022, representing a 45.8% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable at around 69%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observe a corresponding decline in homeownership rates, reaching 67% by 2019. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not immediately reverse this trend, possibly due to economic uncertainties during the pandemic.
As homeownership rates declined, the percentage of renters in zip code 15690 naturally increased. In 2013, 31% of residents were renters, which grew to 37% by 2022. This shift coincided with a significant increase in average rent prices. The average rent rose from $629 in 2013 to $726 in 2022, a 15.4% increase. Notably, there was a sharp spike in average rent to $834 in 2021, possibly reflecting pandemic-related market disruptions, before moderating in 2022.
In 2023 and 2024, we see a continuation of rising average home prices and interest rates. The average home price in zip code 15690 reached $96,196 in 2023 and further increased to $97,955 in 2024, showing a steady upward trajectory. Concurrently, federal interest rates climbed significantly to 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis. These high interest rates could potentially further impact homeownership rates in the area.
Looking ahead, predictive models suggest that average home prices in zip code 15690 may continue to rise over the next five years, albeit at a more moderate pace due to the high interest rate environment. We might expect average home prices to reach around $105,000 to $110,000 by 2029. Average rent prices are also likely to increase, potentially reaching $800 to $850 per month in the same timeframe, assuming current economic conditions persist.
In summary, zip code 15690 has experienced a clear trend of declining homeownership rates and rising housing costs over the past decade. The interplay between increasing home prices, fluctuating rent costs, and changing interest rates has reshaped the local housing market. As we move forward, these trends suggest a continuing shift towards a more rental-oriented market, with homeownership becoming increasingly challenging for some residents due to rising costs and higher interest rates.
