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Average Home Values and Ownership in Zip Code 92561: A Decade of Change in Palm Springs Real Estate
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 92561, located in Palm Springs, California, has experienced dynamic shifts in its housing market over the past decade. This area, known for its desert landscapes and resort-style living, has seen notable changes in homeownership rates and property values, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 92561 has shown a gradual decline from 2013 to 2022, with some fluctuations. In 2013, the area boasted an 84% homeownership rate, which decreased to 77% by 2022. This trend coincided with a significant increase in average home prices. In 2013, the average home price was $237,388, which rose steadily to reach $553,200 in 2022, marking a substantial 133% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates slightly decreased from 84% to 80%. As interest rates began to rise more significantly from 2016 onwards, reaching 1.68% in 2022, homeownership rates continued to decline, albeit at a slower pace, settling at 77% in 2022. This suggests that while low interest rates generally encourage homeownership, other local factors may have played a more significant role in this market.
Renter percentages in zip code 92561 have shown an inverse relationship to homeownership rates, increasing from 16% in 2013 to 23% in 2022. Average rent prices have also seen an upward trend, rising from $1,136 in 2013 to $1,278 in 2022, an increase of about 12.5%. The population in this zip code has fluctuated over the years, with notable increases in some years (like 2017 when it reached 3,494) and decreases in others, which may have influenced rental demand and prices.
In 2023 and 2024, the housing market in zip code 92561 continued its upward trajectory. The average home price in 2023 was $557,535, a slight increase from 2022. In 2024, it further rose to $574,542. These increases occurred despite the Federal Reserve raising interest rates to 5.02% in 2023 and 5.33% in 2024, suggesting strong underlying demand in this market.
Looking ahead, predictive models suggest that average home prices in zip code 92561 are likely to continue their upward trend over the next five years, albeit potentially at a more moderate pace given the current high interest rate environment. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall appreciation of real estate in the area.
In summary, zip code 92561 has experienced a shift towards more renter-occupied housing, coupled with significant appreciation in property values. Despite rising interest rates, the area's desirability appears to be maintaining upward pressure on both home prices and rents. These trends reflect the complex interplay of local market dynamics, broader economic factors, and the unique appeal of Palm Springs as a residential and tourist destination.
