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Average Home Values and Ownership in Zip Code 94601: A Decade of Resilience in Oakland's 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
Zip code 94601, located in Oakland, California, has experienced significant changes in its housing market over the past decade. This area, known for its diverse community and vibrant culture, has seen notable shifts in homeownership rates, average home prices, and average rent prices.
The homeownership rate in zip code 94601 has shown a gradual increase from 31% in 2013 to 34% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $234,264, which more than tripled to $691,338 by 2022, representing a 195% increase over nine years. This dramatic rise in home values likely contributed to the slower growth in homeownership rates, as affordability became a significant challenge for potential buyers.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, which typically encourages homeownership due to more affordable financing options. During this period, homeownership rates remained stable at 31%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), we observed a slight increase in homeownership to 33%. This counter-intuitive trend might be attributed to other local economic factors or a rush to purchase before rates increased further.
Renter percentages in zip code 94601 have slightly decreased from 69% in 2013 to 66% in 2022, inversely mirroring the homeownership trend. Average rent prices have shown a steady increase over this period, rising from $1,200 in 2013 to $1,407 in 2022, a 17.25% increase. This growth in rent prices, while significant, was less dramatic than the surge in home prices. The population in the zip code also increased from 48,831 in 2013 to 52,208 in 2022, potentially contributing to the upward pressure on both home prices and rents.
In 2023 and 2024, we see a notable shift in the housing market. Average home prices in zip code 94601 decreased from $691,338 in 2022 to $639,506 in 2023, and further to $630,828 in 2024. This represents a 8.75% decrease over two years. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, likely contributing to the cooling of the housing market.
Looking ahead, based on recent trends and current economic conditions, we can project potential scenarios for the next five years. Average home prices may continue to experience a slight decline or stabilization in the short term due to high interest rates. However, given the area's desirability and historical growth, a gradual recovery and moderate appreciation can be expected in the medium term. Average rent prices are likely to continue their upward trajectory, albeit at a slower pace, driven by population growth and the high cost of homeownership.
In summary, zip code 94601 has witnessed a remarkable increase in average home prices over the past decade, accompanied by a modest rise in homeownership rates. The rental market has seen steady growth in prices, with a slight decrease in the percentage of renters. Recent data shows a cooling in the housing market, influenced by rising interest rates. These trends reflect the dynamic nature of Oakland's real estate market and the complex interplay between economic factors, population growth, and housing affordability.
