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Average Home Values and Ownership in Zip Code 94507: A Resilient Real Estate Market in Alamo, 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 94507, located in Alamo, California, is a predominantly owner-occupied area with a strong real estate market. This affluent community has seen significant fluctuations in homeownership rates and property values over the past decade, reflecting broader economic trends and local market dynamics.
The ownership percentage in zip code 94507 has remained consistently high, ranging from 89% to 93% between 2013 and 2022. This stability in homeownership is noteworthy, especially considering the substantial increase in average home prices during the same period. In 2016, the average home price was $1,625,797, which rose dramatically to $2,618,569 by 2022, representing a 61% increase over six years. Despite this sharp rise in home values, the area maintained its high rate of owner-occupancy, suggesting a robust and desirable housing market.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting case. While lower interest rates typically encourage homeownership, the already high ownership rates in Alamo seemed less affected by rate fluctuations. For instance, when interest rates were at historic lows of 0.08% in 2021, the ownership rate was 93%. However, it only slightly decreased to 91% in 2022 when interest rates rose to 1.68%, indicating that other factors, such as the area's desirability and wealth, may play a more significant role in maintaining high ownership rates.
Renter percentages in zip code 94507 have remained relatively low, fluctuating between 7% and 10% from 2013 to 2022. Interestingly, average rent prices have shown a general upward trend during this period, rising from $2,101 in 2013 to $2,592 in 2022, a 23% increase. This trend suggests that despite the high cost of renting, there remains a consistent demand for rental properties in the area, possibly driven by factors such as job opportunities or the desire to live in this sought-after community without the commitment of homeownership.
Looking at the most recent data, the average home price in zip code 94507 was $2,482,923 in 2023, showing a slight decrease from the 2022 peak. However, in 2024, the average home price has increased to $2,550,323, indicating a recovery in the market. This uptick occurs despite the federal interest rate rising to 5.33% in 2024, which typically would be expected to cool the housing market. This resilience in home values suggests strong underlying demand in the Alamo area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 94507 will continue to appreciate, albeit at a more moderate pace. The area's consistent appeal, coupled with its limited housing supply, is likely to support ongoing price growth. For rent prices, the forecast suggests a steady increase, potentially reaching an average of around $2,800-$3,000 per month within the next five years, assuming current economic conditions and local market factors remain relatively stable.
In summary, zip code 94507 in Alamo, California, demonstrates a remarkably stable and high rate of homeownership, even in the face of substantial increases in property values. The area's resilience to interest rate changes, consistent demand for both owned and rented properties, and recent recovery in home prices all point to a robust and desirable real estate market. As we look to the future, both home values and rent prices are expected to continue their upward trajectory, cementing Alamo's status as a premium residential area in California.
