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Average Home Values and Ownership in Zip Code 85042: Phoenix Neighborhood Shows Resilience Amid Rising Prices
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 85042, located in Phoenix, Arizona, has experienced significant changes in its real estate landscape over the past decade. This area has shown a general trend of increasing homeownership rates, coupled with substantial growth in average home prices and average rent prices. The homeownership rate in zip code 85042 has remained relatively stable, with slight fluctuations over the years. In 2013, the homeownership rate was 63%, and it maintained this level through 2022, with minor variations in between. Despite this stability, average home prices in the area have seen dramatic increases. In 2013, the average home price was $123,014, and by 2022, it had more than tripled to $411,055, representing a 234% increase over nine years. This substantial rise in home values did not significantly impact homeownership rates, suggesting strong local demand and potentially favorable economic conditions for homebuyers.
Federal interest rates have played a role in shaping homeownership trends in zip code 85042. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained steady at around 60-63%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership to 62%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 85042 have shown a complementary trend to homeownership rates, fluctuating between 37% and 41% from 2013 to 2022. Average rent prices have steadily increased during this period, rising from $1,136 in 2013 to $1,259 in 2022, an 11% increase. This growth in rent prices, while significant, was not as dramatic as the increase in home prices. The population of the zip code also grew during this time, from 39,877 in 2013 to 46,403 in 2022, potentially contributing to the upward pressure on both rent and home prices.
In 2023 and 2024, the real estate market in zip code 85042 showed signs of stabilization. The average home price in 2023 was $389,115, a slight decrease from the 2022 peak. However, in 2024, prices rebounded to $400,782. Interestingly, this occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for some buyers.
Looking ahead, predictive models suggest that average home prices in zip code 85042 may continue to rise moderately over the next five years, potentially reaching around $450,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,500 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 85042 has demonstrated remarkable growth in property values over the past decade, with average home prices more than tripling between 2013 and 2022. Despite this substantial increase, homeownership rates have remained relatively stable, hovering around 60-63%. Rent prices have also shown steady growth, albeit at a more moderate pace. The area's real estate market has shown resilience in the face of fluctuating interest rates and continues to be an area of interest for both homeowners and renters.
