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Average Home Values and Ownership in Palm Springs Zip Code 92258: A Decade of Dramatic Changes
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 92258, located in Palm Springs, California, presents an intriguing housing market with notable fluctuations in homeownership rates and property values over the past decade. This area has experienced significant changes in its demographic composition and real estate landscape, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 92258 has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate stood at 72%, but by 2022, it had decreased to 59%. This downward trend coincides with a substantial increase in average home prices. In 2013, the average home price was $92,405, which rose dramatically to $260,590 by 2022, representing a 182% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 92258. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates remained relatively high, between 64% and 72%. However, as interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), homeownership rates declined, reaching 53% in 2019. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The rental market in zip code 92258 has shown interesting trends as well. The percentage of renters increased from 28% in 2013 to 40% in 2022, inversely mirroring the decline in homeownership. Average rent prices have fluctuated over this period, with a peak of $1,233 in 2015 and a more recent figure of $1,029 in 2022. The population of the zip code has also varied, reaching a high of 472 residents in 2015 before settling at 363 in 2022. These changes in population and rental rates suggest a dynamic local market responding to various economic factors.
In 2023 and 2024, the housing market in zip code 92258 experienced a slight correction. The average home price decreased from $260,590 in 2022 to $245,968 in 2023, and further to $238,708 in 2024. This represents a 5.6% decrease from 2022 to 2023 and a further 2.9% decrease from 2023 to 2024. Simultaneously, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, likely contributing to the cooling of home prices.
Looking ahead, based on recent trends and current market conditions, we can anticipate continued fluctuations in the housing market of zip code 92258. Average home prices may stabilize or show modest growth over the next five years, potentially reaching around $260,000 by 2029. Rent prices could see a gradual increase, potentially rising to approximately $1,200 per month by 2029, assuming economic conditions remain stable and local demand continues to grow.
In summary, zip code 92258 has experienced a shift towards a higher proportion of renters, coupled with significant increases in average home prices over the past decade. The interplay between federal interest rates, local population changes, and broader economic factors has shaped these trends. The recent cooling of home prices and high interest rates suggest a potential period of market adjustment, which may influence future homeownership rates and property values in this Palm Springs neighborhood.
