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Average Home Values and Ownership in Zip Code 85248: A Decade of Growth in Chandler, Arizona
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
United States Census Bureau: American Community Survey Data (ACS)
Zillow: Zillow Home Value Index (ZHVI)
Zip code 85248, located in Chandler, Arizona, has experienced significant demographic and real estate changes over the past decade. This area has seen a steady increase in population, rising from 28,401 in 2010 to 35,751 in 2022, indicating its growing appeal as a residential destination.
The homeownership rate in this zip code has remained relatively stable, with a slight decrease from 82% in 2013 to 80% in 2022. Despite this minor decline, the area maintains a high proportion of owner-occupied homes. Simultaneously, average home prices have shown a substantial upward trend. In 2010, the average home price was $254,591, which more than doubled to $579,323 by 2022. This remarkable increase in property values suggests a strong demand for housing in the area, potentially driven by factors such as local economic growth and the desirability of the neighborhood.
Federal interest rates have played a significant role in shaping homeownership trends. From 2010 to 2021, interest rates remained historically low, ranging from 0.08% to 2.16%. This period of low interest rates likely contributed to maintaining the high homeownership rate in zip code 85248, as it made mortgage financing more affordable for potential buyers. The slight decrease in homeownership from 2013 to 2022 might be attributed to rising home prices outpacing income growth, even in a low-interest-rate environment.
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The rental market in zip code 85248 has also seen notable changes. The percentage of renters increased slightly from 18% in 2013 to 20% in 2022. This modest rise in the renter population coincided with a significant increase in average rent prices. In 2013, the average rent was $1,477, which rose to $1,870 by 2022, representing a 26.6% increase over nine years. The growth in rent prices, while substantial, was not as dramatic as the increase in home prices, potentially making renting a more attractive option for some residents.
Looking at the most recent data, the average home price in zip code 85248 decreased slightly from $579,323 in 2022 to $561,058 in 2023, followed by a modest increase to $570,509 in 2024. This recent trend suggests a stabilization in the housing market after years of rapid growth. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could impact future homebuying decisions and potentially lead to a shift in the homeownership rate.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 85248 will continue to rise, albeit at a more moderate pace than seen in the past decade. The average home price could potentially reach around $650,000 by 2029. Average rent prices are also expected to increase, potentially reaching approximately $2,300 by 2029. These predictions are based on historical trends and current market conditions, assuming no major economic disruptions.
In summary, zip code 85248 in Chandler, Arizona, has demonstrated a robust real estate market with significant appreciation in both home values and rent prices over the past decade. The area maintains a high homeownership rate despite rising property values, indicating strong local demand. The recent stabilization in home prices and increase in interest rates may lead to a more balanced market in the coming years, potentially affecting the dynamics between homeownership and renting in this zip code.
