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Average Home Values and Ownership in Zip Code 94111: San Francisco's Financial District Sees Significant Fluctuations
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
San Francisco's 94111 zip code, located in the heart of the city's Financial District, offers a unique blend of urban living and historical charm. This area has experienced significant fluctuations in homeownership rates and housing costs over the past decade, reflecting the dynamic nature of San Francisco's real estate market. The homeownership rate in zip code 94111 has shown notable changes from 2013 to 2022. In 2013, the percentage of owner-occupied homes stood at 21%. This figure remained relatively stable until 2016 when it began to decline, reaching 18% by 2019. However, a significant shift occurred in 2020, with homeownership jumping to 33%. By 2022, it had settled at 30%. Concurrently, average home prices in the area have seen substantial growth. In 2013, the average home price was $845,316, which steadily increased to $1,223,478 by 2018. After a slight dip in 2019 and 2020, prices reached $1,193,881 in 2022, representing a 41% increase over the 2013 figure.
The relationship between federal interest rates and homeownership rates in zip code 94111 presents an interesting case. While lower interest rates typically encourage homeownership, this area shows some deviation from this trend. For instance, despite historically low interest rates of 0.08% in 2021, the homeownership rate actually decreased from 33% in 2020 to 30% in 2021 and remained at 30% in 2022, even as interest rates rose to 1.68%.
Renter percentages and average rent prices in zip code 94111 have also shown notable trends. The percentage of renter-occupied units increased from 76% in 2013 to 79% in 2019, before dropping to 67% in 2020 and then rising slightly to 70% in 2022. Average rent prices have generally increased over this period, starting at $1,721 in 2013 and reaching $1,934 in 2022, a 12.4% increase. However, there were fluctuations within this period, with rent peaking at $2,057 in 2020 before declining slightly in subsequent years.
Looking at the most recent data, the average home price in zip code 94111 for 2023 was $1,071,388, a decrease of about 10.3% from 2022. In 2024, the average home price further decreased to $1,046,681, representing a 2.3% drop from 2023. Interestingly, these price decreases coincide with significant increases in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This inverse relationship between interest rates and home prices is a common trend in real estate markets.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 94111 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 begin to rise again within the next 2-3 years. For rent prices, we expect a moderate upward trend, potentially reaching an average of around $2,100-$2,200 per month by 2029, driven by the area's continued popularity and limited housing supply.
In summary, zip code 94111 has demonstrated significant volatility in both homeownership rates and housing costs. The area has seen a general trend towards higher home prices and rents over the past decade, with some recent moderation due to economic factors. The interplay between interest rates, homeownership, and housing prices in this zip code highlights the complex dynamics of urban real estate markets, particularly in high-demand areas like San Francisco's Financial District.
