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Average Home Values and Ownership in Zip Code 92256: A Decade of Change in Morongo Valley
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 92256, located in Morongo Valley, California, presents an intriguing landscape of homeownership and housing market dynamics. This area has experienced notable fluctuations in ownership percentages and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 92256 has shown significant variability from 2013 to 2022. In 2013, the ownership rate stood at 69%, gradually increasing to peak at 82% in 2017. However, this trend reversed in subsequent years, with ownership declining to 69% by 2022. Concurrently, average home prices in the area have demonstrated a consistent upward trajectory. From 2013 to 2022, average home prices more than tripled, rising from $95,383 to $348,972. This substantial increase in home values, particularly the sharp rise from $216,890 in 2020 to $348,972 in 2022, may have contributed to the recent decline in homeownership rates as affordability became a growing concern for potential buyers.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation, though local factors also play a significant role. For instance, the period of historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%) coincided with an increase in homeownership from 69% to 76%. However, the continuation of low rates through 2020 did not prevent a slight decline in ownership rates, suggesting that other factors, such as rapidly increasing home prices, may have offset the benefits of low interest rates for potential homebuyers.
Renter percentages in zip code 92256 have inversely mirrored the homeownership trends, decreasing from 31% in 2013 to a low of 18% in 2017, before rising back to 31% by 2022. Average rent prices have shown a general upward trend, increasing from $821 in 2013 to $926 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,042, coinciding with a period of increased renter occupancy. The population in the area has remained relatively stable, fluctuating between 3,850 and 4,450 residents, which suggests that changes in renter percentages are more likely due to shifts between renting and owning rather than significant population changes.
Looking at the most recent data, average home prices in zip code 92256 experienced a slight decrease from $348,972 in 2022 to $329,670 in 2023, with a further minor decline to $329,432 in 2024. This recent stabilization in home prices coincides with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices by reducing buyer demand.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 92256 may experience a period of slower growth or slight decline in the short term, influenced by higher interest rates and potential market corrections. However, given the area's historical trend of appreciation, prices are likely to stabilize and potentially resume moderate growth in the medium term. Average rent prices are expected to continue their upward trajectory, albeit at a more moderate pace, driven by ongoing demand for rental properties as homeownership becomes less accessible due to higher interest rates and still-elevated home prices.
In summary, zip code 92256 has witnessed a dynamic housing market over the past decade, characterized by substantial increases in home values, fluctuating homeownership rates, and gradually rising rents. The recent cooling of home prices, coupled with higher interest rates, suggests a potential shift in the market dynamics. These trends underscore the complex interplay between housing affordability, interest rates, and demographic shifts in shaping the local real estate landscape.
