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Average Home Values and Ownership in Zip Code 93257: A Decade of Change in Porterville, California
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 93257, located in Porterville, California, has experienced notable shifts in housing dynamics over the past decade. This area, spanning 381.19 square miles, has seen fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 93257 has shown a slight downward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate stood at 57%, gradually declining to 53% by 2020, before rebounding to 56% in 2022. Concurrently, average home prices have experienced substantial growth. In 2013, the average home price was $128,563, which more than doubled to $295,171 by 2022, representing a 129.6% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relatively stable homeownership rates around 54-55%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates experienced a slight decline, reaching 53% in 2018. The sharp drop in interest rates to 0.38% in 2020 and 0.08% in 2021 corresponded with a modest recovery in homeownership rates to 54% by 2021, illustrating how lower interest rates can stimulate home buying activity.
Renter occupancy in zip code 93257 has generally mirrored the inverse of homeownership trends, increasing from 43% in 2013 to 47% in 2020, before slightly decreasing to 44% in 2022. Average rent prices have shown a consistent upward trend, rising from $956 in 2013 to $1,001 in 2022, an increase of 4.7%. This growth in rent prices, while significant, has been less dramatic than the surge in home prices. The population in the zip code has also grown from 77,012 in 2013 to 79,804 in 2022, potentially contributing to increased demand for rental properties and supporting the upward trend in rent prices.
In 2023 and 2024, the housing market in zip code 93257 continued to evolve. The average home price reached $301,410 in 2023 and further increased to $312,420 in 2024, representing a 3.7% year-over-year growth. Notably, federal interest rates climbed significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial shift from the low-interest environment of previous years. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 93257 could continue to rise over the next five years, potentially reaching around $350,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. Average rent prices are also expected to increase, albeit at a more moderate pace, potentially reaching approximately $1,150 per month by 2029. These predictions indicate a continuing trend of appreciation in both owned and rented properties in the area.
In summary, zip code 93257 has experienced a notable increase in property values over the past decade, with average home prices more than doubling. Despite this, homeownership rates have remained relatively stable with slight fluctuations, influenced by changing interest rates and economic conditions. Rent prices have also risen, though less dramatically than home prices. The recent spike in interest rates and continued growth in property values suggest that affordability may become an increasingly important factor in the local housing market in the coming years.
