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Average Home Values and Ownership in Zip Code 94511: A Decade of Significant Change
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 94511, located in Bethel Island, California, presents an intriguing case study of housing market dynamics in a small community. This area has experienced significant fluctuations in homeownership rates and property values over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 94511 has shown a notable decline from 2017 to 2022. In 2017, the area boasted a high 90% homeownership rate, but this figure dropped to 73% by 2022. Interestingly, this decline in homeownership coincided with a substantial increase in average home prices. The average home price in the area rose from $485,145 in 2017 to $735,955 in 2022, representing a 51.7% increase over five years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents, leading to a shift towards renting.
The federal interest rate trends appear to have influenced homeownership rates in the area. From 2013 to 2017, when interest rates were historically low (ranging from 0.11% to 1%), homeownership rates in zip code 94511 increased from 82% to 90%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise more sharply from 2018 onwards, reaching 1.68% in 2022, the homeownership rate in the area declined, falling to 73% by 2022.
The renter population in zip code 94511 has grown as homeownership has declined. The percentage of renters increased from 10% in 2017 to 27% in 2022. Interestingly, despite this increase in demand for rentals, the average rent price in the area has shown some volatility. Average rent peaked at $1,130 in 2014 and 2015, then declined to $867 in 2017. It has since rebounded, reaching $965 in 2022. This fluctuation in rent prices, despite increasing renter population, could be attributed to various factors including changes in local housing supply and broader economic conditions affecting the area.
In 2023 and 2024, the housing market in zip code 94511 showed signs of cooling. The average home price decreased slightly from $735,955 in 2022 to $707,138 in 2023, before rising modestly to $717,817 in 2024. This cooling trend coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the moderation in home prices by making mortgages more expensive and reducing buyer demand.
Looking ahead, based on current trends, we can expect the average home prices in zip code 94511 to continue a modest upward trajectory over the next five years, albeit at a slower pace than seen in the early 2020s. Average rent prices are likely to stabilize and potentially increase gradually, driven by the growing renter population in the area. However, these projections are subject to change based on various economic factors and local market conditions.
In summary, zip code 94511 has experienced a significant shift from high homeownership to increased renting, coupled with substantial growth in average home prices. The interplay between federal interest rates, local housing demand, and affordability has shaped these trends. As the market adjusts to higher interest rates and changing demographics, it will be crucial to monitor how these factors continue to influence homeownership rates and housing costs in this California community.
