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Average Home Values and Ownership in Zip Code 94931: Cotati's Evolving 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 94931, located in Cotati, California, has exhibited notable trends in homeownership and property values over the past decade. This area has experienced fluctuations in ownership percentages and significant changes in both housing and rental markets. The homeownership rate in zip code 94931 has undergone notable shifts from 2013 to 2022. Starting at 56% in 2013, it reached a peak of 63% in 2018, before slightly decreasing to 58% by 2022. During this same period, average home prices in the area demonstrated a strong upward trend. The average home price rose from $354,041 in 2013 to $728,796 in 2022, marking a substantial 105.8% increase over nine years. This significant rise in home prices, coupled with the recent slight decrease in homeownership rates, suggests that affordability may have become a growing concern for potential buyers in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 94931. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the area saw an increase in homeownership from 56% to 63%. 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 significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate stabilized around 63%. The slight decrease in homeownership to 58% by 2022 coincided with interest rates jumping to 1.68%, potentially making mortgages less affordable for some buyers.
Renter percentages in zip code 94931 have inversely mirrored the homeownership trends, decreasing from 44% in 2013 to 37% in 2018, before rising again to 42% by 2022. Average rent prices have shown a general upward trend, albeit with some fluctuations. In 2013, the average rent was $1,513, which increased to $1,610 by 2022, representing a 6.4% increase over nine years. Notably, there was a significant jump in average rent from $1,626 in 2020 to $1,761 in 2021, possibly reflecting increased demand for rentals as homeownership became more challenging due to rising home prices and interest rates.
Looking at the most recent data, average home prices in zip code 94931 showed a slight decrease from $728,796 in 2022 to $727,755 in 2023, followed by a modest increase to $739,004 in 2024. This represents a relatively stable market with a slight upward trend. Interestingly, federal interest rates have risen significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing demand in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 94931 will continue to rise, albeit at a more moderate pace than seen in the past decade. The average home price could potentially reach around $800,000 by 2029. For average rent prices, we predict a continued upward trend, potentially reaching approximately $1,800 by 2029, assuming similar growth patterns and economic conditions persist.
In summary, zip code 94931 has experienced significant growth in average home prices over the past decade, with homeownership rates fluctuating but remaining relatively stable. The rental market has seen more modest increases in prices, with renter percentages inversely correlating with homeownership trends. The recent stabilization of home prices and the sharp increase in interest rates suggest a potential shift in the housing market dynamics, which could impact both homeownership rates and rental demand in the coming years.
