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Average Home Values and Ownership in Zip Code 92124: Mission Trails' Neighbor Sees Steady Growth
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 92124, located in San Diego, California, has experienced significant shifts in homeownership rates, average home prices, and average rent prices over the past decade. This area, known for its suburban charm and proximity to urban amenities, has seen a dynamic real estate market with notable trends in ownership and rental patterns.
The homeownership rate in zip code 92124 has remained relatively stable, fluctuating between 42% and 45% from 2013 to 2022. However, there has been a slight overall decline, with the ownership rate dropping from 45% in 2021 to 42% in 2022. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $493,489, which more than doubled to $1,008,626 by 2022. This dramatic rise in home values may have contributed to the slight decrease in homeownership, as higher prices potentially priced out some potential buyers.
Federal interest rates have played a significant role in shaping homeownership trends. The period from 2010 to 2021 saw historically low interest rates, ranging from 0.08% to 2.16%. These low rates generally encourage homeownership by making mortgages more affordable. However, the sharp increase in home prices in zip code 92124 may have offset some of the benefits of low interest rates, explaining the relatively stable homeownership rate despite favorable borrowing conditions.
The rental market in zip code 92124 has shown a corresponding trend to homeownership rates. The percentage of renters increased slightly from 55% in 2021 to 58% in 2022. This increase in renters aligns with the rising average rent prices. In 2013, the average rent was $2,009, which steadily increased to $2,501 by 2022, representing a 24.5% increase over nine years. The growing renter population and rising rent prices suggest a strong demand for rental properties in the area, possibly driven by those unable to afford home purchases due to the rapid appreciation in home values.
Looking at the most recent data, the average home price in zip code 92124 continued to rise, reaching $1,018,191 in 2023 and $1,093,780 in 2024. This represents an 8.4% increase from 2022 to 2024. Concurrently, federal interest rates have significantly increased, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the rapid home price appreciation and affect homeownership rates in the coming years.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 92124 to continue rising, albeit at a potentially slower rate due to higher interest rates. The average home price could reach approximately $1.3 million by 2029. Average rent prices are also projected to increase, potentially reaching around $2,900 per month in the next five years, assuming the current growth rate continues.
In summary, zip code 92124 has experienced a significant increase in both average home prices and average rent prices over the past decade. While homeownership rates have remained relatively stable, there's a slight trend towards more renters. The rapid appreciation in home values, combined with rising interest rates, may continue to shape the real estate landscape in this San Diego neighborhood, potentially favoring the rental market in the short term while long-term homeownership trends will likely depend on the interplay between home prices, interest rates, and local economic factors.
