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Auburn's 95603 Zip Code: Home Values Soar Amidst Gold Rush Heritage
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 95603, located in Auburn, California, has experienced significant changes in its housing market over the past decade. This area has seen a general trend of increasing homeownership rates and rising average home prices, coupled with fluctuations in the rental market.
The homeownership rate in zip code 95603 has shown a steady increase from 64% in 2013 to 66% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $301,260, which increased dramatically to $632,126 by 2022, representing a 110% increase over nine years. This significant appreciation in home values likely contributed to the growing appeal of homeownership in the area.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2022 was characterized by historically low interest rates, ranging from 0.11% in 2013 to 1.68% in 2022. These low rates made mortgage financing more accessible, potentially contributing to the increase in homeownership rates. The relationship between low interest rates and increased homeownership is particularly evident in the years 2020 and 2021, when interest rates dropped to 0.38% and 0.08% respectively, coinciding with a peak in homeownership at 66% and 67%.
The rental market in zip code 95603 has shown interesting trends as well. The percentage of renters decreased slightly from 34% in 2013 to 33% in 2022. Despite this minor decrease, average rent prices increased from $1,374 in 2013 to $1,410 in 2022, a 2.6% increase. It's worth noting that there were fluctuations in between, with average rent reaching a high of $1,516 in 2021. The relatively stable renter percentage, despite rising rent prices, might be attributed to the area's growing population, which increased from 27,349 in 2013 to 28,491 in 2022.
In 2023 and 2024, the housing market in zip code 95603 experienced some changes. The average home price decreased from $632,126 in 2022 to $599,984 in 2023, a 5.1% drop. However, there was a slight recovery in 2024, with the average home price increasing to $601,410. This period also saw a significant rise in federal interest rates, reaching 5.02% in 2023 and 5.33% in 2024, which may have influenced the housing market dynamics.
Looking ahead, based on historical trends and current market conditions, we can expect the average home prices in zip code 95603 to continue their overall upward trajectory, albeit at a more moderate pace. The average home price is projected to reach approximately $650,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $1,600 by 2029. However, these projections may be influenced by various factors including economic conditions, local development, and changes in federal interest rates.
In summary, zip code 95603 has demonstrated a robust housing market with increasing homeownership rates and significant appreciation in home values over the past decade. The rental market has remained relatively stable in terms of occupancy, but with gradual increases in average rent prices. The recent slight dip in home prices, coupled with rising interest rates, suggests a potential market adjustment, but the long-term trend appears to remain positive for both homeowners and property investors in this area.
