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Average Home Values and Ownership in Zip Code 94603: Oakland'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
Oakland's 94603 zip code, located in California, has experienced significant shifts in its housing market over the past decade. This area has seen notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 94603 has remained relatively stable, fluctuating between 44% and 47% from 2013 to 2022. Despite this stability, average home prices have shown a dramatic increase. In 2010, the average home price was $146,600, which grew steadily to reach $592,999 by 2022, representing a substantial 304% increase over 12 years. This trend suggests that while the proportion of homeowners remained consistent, the value of owned properties significantly appreciated.
Federal interest rates play a crucial role in homeownership trends. From 2010 to 2016, interest rates remained historically low, hovering between 0.1% and 0.4%. During this period, homeownership in the 94603 zip code slightly increased from 45% in 2013 to 46% in 2016. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed minor fluctuations but ultimately remained at 46% in 2022, demonstrating resilience in the face of changing borrowing costs.
Renter percentages in the 94603 zip code have mirrored homeownership rates, ranging from 53% to 56% between 2013 and 2022. Average rent prices have steadily increased during this period, rising from $1,388 in 2013 to $1,575 in 2022, a 13.5% increase. This trend aligns with the growing population in the area, which increased from 30,584 in 2013 to 33,653 in 2022, potentially driving up demand for rental properties.
In 2023 and 2024, the housing market in zip code 94603 experienced a slight correction. The average home price decreased from $592,999 in 2022 to $546,807 in 2023, a 7.8% drop. However, prices stabilized in 2024, with a minor increase to $549,311. This period coincides with a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially influencing buyer behavior and home prices.
Looking ahead, predictive models suggest a potential stabilization or moderate growth in both average home and rent prices over the next five years. Home prices may see a gradual increase, potentially reaching around $600,000 by 2029, assuming economic conditions remain stable. Average rent prices could continue their upward trend, potentially surpassing $1,800 per month within the same timeframe.
In summary, the 94603 zip code has demonstrated resilience in its housing market, with stable homeownership rates despite significant increases in average home prices. The rental market has shown steady growth in both demand and prices, reflecting population increases. Recent market corrections and high interest rates have slightly tempered home price growth, but the overall trend remains positive. The area's housing market appears poised for continued, albeit more moderate, growth in both the ownership and rental sectors in the coming years.
