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Average Home Values and Ownership in ZIP Code 94549: Lafayette's Resilient Housing 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
Lafayette, located in California's zip code 94549, is an affluent suburban community known for its excellent schools and high quality of life. This area has experienced significant changes in homeownership rates and property values over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in Lafayette has remained relatively stable, fluctuating between 74% and 75% from 2013 to 2022. Despite this consistency, average home prices have shown a dramatic upward trajectory. In 2013, the average home price was $1,023,016, which nearly doubled to $2,072,407 by 2022, representing a 102.6% increase over nine years. This substantial appreciation in home values has occurred despite minimal changes in the proportion of owner-occupied housing.
Federal interest rates have played a significant role in shaping homeownership trends in Lafayette. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates remained steady at 74-75%, while average home prices increased from $1,023,016 in 2013 to $1,350,480 in 2016, a 32% rise. As interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in Lafayette showed resilience, maintaining at 75% in 2022, possibly due to the area's high-income demographics and desirable location.
Renter percentages in Lafayette have remained relatively stable, ranging from 24% to 26% between 2013 and 2022. However, average rent prices have seen significant increases during this period. In 2013, the average rent was $1,715, which rose to $2,807 by 2022, representing a 63.7% increase. This upward trend in rent prices occurred despite only minor fluctuations in the renter population percentage, suggesting strong rental demand in the area. The population growth from 30,231 in 2013 to 31,182 in 2022 may have contributed to the increased rental prices, as housing supply struggled to keep pace with demand.
In 2023 and 2024, Lafayette experienced a slight cooling in its real estate market. The average home price decreased from $2,072,407 in 2022 to $1,972,271 in 2023, a 4.8% decline. This trend continued into 2024, with prices stabilizing at $1,970,720. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially contributing to the moderation in home prices.
Looking ahead, predictive models suggest that Lafayette's real estate market may experience a period of slower growth or slight correction. Average home prices are projected to stabilize or potentially decrease slightly over the next five years, given the current high interest rate environment and the recent cooling trend. Rent prices, however, are expected to continue their upward trajectory, albeit at a more moderate pace, driven by the area's consistent desirability and limited housing supply growth.
In summary, Lafayette's 94549 zip code has demonstrated remarkable resilience in its homeownership rates despite substantial increases in property values. The area has seen significant appreciation in both home prices and rents over the past decade, reflecting its desirability and strong local economy. However, recent trends suggest a potential stabilization in the housing market, influenced by rising interest rates and broader economic factors. The rental market is expected to remain strong, with continued upward pressure on prices due to persistent demand in this sought-after community.
