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Average Home Values and Ownership in Zip Code 94014: A Decade of Resilience and 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 94014, located in Daly City, California, has demonstrated remarkable resilience in its real estate market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the evolving landscape of this vibrant community. The homeownership rate in zip code 94014 has shown a gradual increase from 57% in 2013 to 59% in 2022. This upward trend coincides with a substantial rise in average home prices, which grew from $521,687 in 2013 to $1,123,862 in 2022, representing a remarkable 115% increase over nine years. The relationship between homeownership rates and average home prices suggests that despite the significant price appreciation, residents have been able to maintain and even slightly increase their rates of homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 94014. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the initial increase in homeownership from 57% to 58%. As interest rates began to rise more significantly from 2017 to 2019, reaching 2.16%, the homeownership rate continued to climb, peaking at 60% in 2020. This suggests that other factors, such as a strong local economy or desire for homeownership, may have outweighed the impact of rising interest rates during this period.
Renter percentages in zip code 94014 have inversely mirrored the homeownership trends, decreasing from 43% in 2013 to 41% in 2022. Interestingly, average rent prices have shown a consistent upward trajectory, rising from $1,707 in 2013 to $1,950 in 2022, an increase of about 14%. The population of the zip code remained relatively stable during this period, with only minor fluctuations, suggesting that the rental market has become more competitive and expensive despite a slight decrease in the percentage of renters.
Looking at the most recent data, the average home price in zip code 94014 for 2023 was $1,041,388, showing a decrease from the 2022 peak. This trend continues into 2024, with the average home price at $1,039,863. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the slight cooling in home prices, as higher borrowing costs can dampen demand.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 94014 may experience a period of stabilization or modest growth, assuming interest rates remain elevated. The current high interest rate environment could potentially slow down price appreciation in the short term. For average rent prices, we expect a continued upward trend, albeit at a more moderate pace, driven by the area's desirability and the ongoing balance between homeownership and renting.
In summary, zip code 94014 has demonstrated resilience in homeownership rates despite substantial increases in average home prices over the past decade. The interplay between federal interest rates, home prices, and homeownership rates highlights the complex dynamics of the local real estate market. While recent data shows a slight cooling in home prices, the long-term trend suggests a robust and desirable housing market in this area of Daly City, California.
