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Average Home Values and Ownership in Berkeley's 94708 Zip Code: A Decade of Growth and Stability
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 94708, located in Berkeley, California, is renowned for its scenic hillside neighborhoods and proximity to the University of California, Berkeley. This area has maintained a consistently high rate of homeownership, with slight fluctuations in average home prices and average rent prices over the years.
The ownership percentage in zip code 94708 has remained relatively stable, hovering around 84-85% from 2013 to 2022. During this period, average home prices have shown a significant upward trend. In 2013, the average home price was $893,408, which steadily increased to $1,756,865 by 2022, representing a 96.6% increase over nine years. This substantial rise in average home prices did not significantly impact the homeownership rate, suggesting a strong and resilient local real estate market.
Federal interest rates have played a role in homeownership trends, although the impact appears less pronounced in this zip code due to its consistently high ownership rate. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate remained steady at 84%. This stability suggests that other factors, such as the desirability of the area and the financial stability of residents, may have a more significant influence on homeownership in this particular zip code.
Renter percentages in zip code 94708 have remained low, fluctuating between 15% and 17% from 2013 to 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $1,696, which rose significantly to $2,734 by 2017, an increase of 61.2%. However, after peaking at $2,752 in 2018, average rent prices began to decline, reaching $2,300 in 2022. This trend occurred despite a growing population, which increased from 11,579 in 2013 to 12,343 in 2022, suggesting that other factors such as new housing developments or changes in local rental policies may have influenced rent prices.
In 2023 and 2024, the average home prices in zip code 94708 showed a slight decline followed by a modest increase. The average home price in 2023 was $1,642,122, representing a 6.5% decrease from 2022. However, in 2024, the average home price rose to $1,669,075, a 1.6% increase from the previous year. Interestingly, this occurred against a backdrop of rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and buyer behavior.
Looking ahead, based on historical trends and current market conditions, we can project potential 5-year trends for average home and rent prices in zip code 94708. Average home prices are likely to continue their overall upward trajectory, albeit at a more moderate pace. We might expect average home prices to reach approximately $1,900,000 to $2,100,000 by 2029. For average rent prices, the trend suggests a potential stabilization or modest increase, possibly reaching $2,500 to $2,700 per month by 2029.
In summary, zip code 94708 in Berkeley, California, demonstrates a remarkably stable and high rate of homeownership despite significant increases in average home prices. The area has shown resilience to external factors such as interest rate changes, suggesting strong local demand and a robust real estate market. While average rent prices have fluctuated, they appear to be stabilizing in recent years. The coming years may see continued growth in home values and a modest increase in rent prices, reflecting the enduring desirability of this Berkeley neighborhood.
