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Average Home Values and Ownership in Zip Code 92612: A Decade of Dynamic Changes in Irvine's Housing Market
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 92612, located in Irvine, California, is known for its master-planned communities and excellent educational institutions. This area has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade, reflecting the dynamic nature of Irvine's real estate market.
The homeownership rate in zip code 92612 has shown a slight downward trend over the years. In 2013, the percentage of owner-occupied homes was 33%, which decreased to 30% by 2022. This decline in homeownership corresponds with a substantial increase in average home prices. In 2013, the average home price was $568,086, which rose dramatically to $990,843 by 2022, representing a 74% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.83%), homeownership rates did not increase significantly. This suggests that other factors, such as rapidly rising home prices, may have outweighed the potential benefits of low interest rates for potential homebuyers in this area.
Renter percentages in zip code 92612 have shown a slight upward trend, increasing from 65% in 2013 to 70% in 2022. This rise in renters coincides with an increase in average rent prices. In 2013, the average rent was $1,952, which grew to $2,504 by 2022, a 28% increase. The population in this zip code also grew during this period, from 28,403 in 2013 to 33,028 in 2022, potentially contributing to the increased demand for rental properties.
In 2023 and 2024, the average home prices in zip code 92612 continued to rise significantly. The average home price reached $1,029,608 in 2023 and further increased to $1,133,186 in 2024, representing a 14% increase in just two years. This rapid appreciation occurred despite federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to slow housing price growth.
Looking ahead, based on the historical data and recent trends, we can forecast continued growth in both average home prices and rent prices for zip code 92612 over the next five years. Average home prices are projected to potentially reach $1.5 million by 2029, assuming a similar growth rate to recent years. Average rent prices could increase to around $3,000 per month in the same timeframe, following the current trajectory.
In summary, zip code 92612 has experienced a significant increase in both average home prices and average rent prices over the past decade, accompanied by a slight decrease in homeownership rates. The area's desirability, population growth, and economic factors have contributed to these trends, which are expected to continue in the coming years, albeit potentially at a more moderate pace due to rising interest rates.
