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Average Home Values and Ownership in Zip Code 94061: A Decade of Resilience in Redwood City's Real Estate 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 94061, located in Redwood City, California, is a dynamic area in the heart of Silicon Valley that has experienced significant changes in its housing market over the past decade. This analysis focuses on the trends in homeownership rates, average home prices, and rental costs from 2013 to 2024, revealing a resilient market despite substantial price increases.
The homeownership rate in zip code 94061 has remained relatively stable, fluctuating between 50% and 53% from 2013 to 2022. Remarkably, even as average home prices rose dramatically, the homeownership rate did not show a corresponding decline. In 2013, the average home price was $855,116, with a homeownership rate of 52%. By 2022, the average home price had soared to $1,991,878, yet the homeownership rate remained steady at 52%. This stability suggests a robust local economy and high incomes in the area, enabling residents to keep pace with rising home values.
Federal interest rates have influenced homeownership trends in zip code 94061. During periods of low interest rates, such as from 2013 to 2016 when rates were below 0.5%, the area maintained relatively stable homeownership rates around 51-52%. A slight increase in homeownership to 53% in 2021 coincided with historically low interest rates of 0.08%, potentially encouraging more buyers to enter the market. However, the relationship between interest rates and homeownership is not always direct, as other local factors also play a role in shaping these trends.
Renter percentages in zip code 94061 have mirrored homeownership rates, fluctuating between 47% and 50% from 2013 to 2022. Average rent prices have shown a steady upward trend during this period. In 2013, the average rent was $1,779, which increased to $2,600 by 2022, representing a 46% increase over nine years. Despite the rising costs, the renter population has remained relatively stable, indicating strong demand for rental properties in the area. This demand may be driven by the growing population, which increased from 36,577 in 2013 to 37,070 in 2022.
In 2023 and 2024, the housing market in zip code 94061 experienced some interesting developments. The average home price in 2023 was $1,849,016, showing a decrease from the 2022 peak of $1,991,878. However, in 2024, there was a slight recovery with the average home price rising to $1,877,401. This coincided with higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting buying decisions and overall market dynamics.
Based on historical trends and current market conditions, projections for the next five years suggest potential scenarios for zip code 94061. Average home prices may continue to experience moderate growth, possibly reaching around $2.2 million by 2029, assuming a conservative annual growth rate of 3-4%. Average rent prices could potentially increase to approximately $3,000 per month by 2029, following the historical trend of steady increases.
In conclusion, zip code 94061 in Redwood City has demonstrated resilience in its housing market, maintaining stable homeownership rates despite substantial increases in property values. The area has seen consistent growth in both average home prices and average rent prices, reflecting its desirability and strong local economy. While recent years have shown some fluctuations, the overall trend suggests continued appreciation in the real estate market, albeit potentially at a more moderate pace than in previous years.
