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Average Home Values and Ownership in Zip Code 94105: A Decade of Change in San Francisco's Financial District
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
The 94105 zip code in San Francisco, located in the Financial District, has undergone significant demographic and real estate changes over the past decade. This area has experienced an increase in population density and fluctuations in homeownership rates, alongside substantial changes in average home prices and rental costs.
The homeownership rate in 94105 has shown variability over the years. In 2013, the area had a 42% homeownership rate, which declined to 37% by 2022. This decrease in homeownership coincided with a dramatic increase in average home prices. In 2013, the average home price was $944,682, which rose to $1,258,678 by 2022, representing a 33.2% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for many residents in the area.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable around 38-39%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate showed more volatility, dropping to 37% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in 94105 have generally increased as homeownership rates declined. The renter-occupied percentage rose from 50% in 2013 to 63% in 2022. Average rent prices have shown significant fluctuations during this period. In 2013, the median rent was $1,494, which more than doubled to $3,065 by 2015. Rent prices remained relatively stable around $3,000 until 2022, when they reached $3,090. The substantial increase in the renter population, from 2,523 in 2013 to 7,338 in 2022, likely contributed to the sustained high rental prices despite the increased supply of rental units.
Looking at the most recent data, the average home price in 94105 decreased to $1,109,947 in 2023 and slightly to $1,103,554 in 2024. This represents a 12.3% decrease from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially contributing to the cooling of home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in 94105 may continue to experience some downward pressure in the short term due to high interest rates. However, given the desirable location and historical resilience of San Francisco's real estate market, prices are likely to stabilize and potentially show modest growth in the latter part of the 5-year period. Rent prices are expected to remain high, potentially increasing at a rate slightly above inflation, driven by the area's continued popularity and the high percentage of renters.
In summary, the 94105 zip code has undergone significant changes, with a general trend towards more renters and higher housing costs over the past decade. The area has seen substantial population growth, driving demand for both owned and rented properties. Recent data suggests a potential cooling in the housing market, likely influenced by rising interest rates. The interplay between homeownership rates, rental percentages, and housing costs in this dynamic urban area will continue to be shaped by economic factors, population trends, and the unique characteristics of San Francisco's real estate market.
