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Average Home Values and Ownership in Zip Code 85254: A Decade of Stability Amid Price Fluctuations
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 85254, located in Phoenix, Arizona, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown a resilient housing market with fluctuating ownership percentages and steadily increasing property values.
The homeownership rate in zip code 85254 has remained relatively stable, with slight fluctuations between 70% and 74% from 2013 to 2022. In 2013, the ownership rate was 73%, which dipped to 70% in 2015 and remained constant until 2019. By 2022, it increased to 74%. During this period, average home prices in the area saw a substantial rise. In 2013, the average home price was $362,867, which steadily increased to $844,007 by 2022, representing a remarkable 132.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 2.16%), homeownership rates remained relatively stable. This suggests that other factors, such as local economic conditions or housing supply, may have played a more significant role in determining homeownership rates in this area.
Renter percentages in zip code 85254 have shown slight variations, inversely mirroring the homeownership trends. The renter percentage was 27% in 2013, peaked at 30% in 2016 and 2019, and decreased to 26% by 2022. Average rent prices have steadily increased during this period. In 2013, the average rent was $1,706, which rose to $2,016 by 2022, an 18.2% increase. It's worth noting that the population in this zip code decreased from 45,474 in 2013 to 43,789 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, the housing market in zip code 85254 showed interesting developments. The average home price slightly decreased to $827,619 in 2023, a 1.9% drop from 2022. However, it rebounded to $866,084 in 2024, representing a 4.6% increase from 2023. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and further to 5.33% in 2024, reaching levels not seen since 2007.
Looking ahead, predictive models suggest that average home prices in zip code 85254 may continue to rise over the next five years, albeit at a more moderate pace due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall cost of living increases in the Phoenix metropolitan area.
In summary, zip code 85254 has demonstrated a robust housing market with steadily increasing property values and rent prices over the past decade. Despite fluctuations in homeownership rates and federal interest rates, the area has maintained a strong owner-occupied majority. The recent uptick in interest rates and the slight dip in home prices in 2023 followed by a rebound in 2024 suggest a market adjusting to new economic conditions. These trends indicate a dynamic and resilient housing market in this Phoenix neighborhood.
