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Average Home Values and Ownership in Zip Code 95329: Lake Don Pedro'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
Lake Don Pedro, located in zip code 95329 in California, is a community that has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, spanning 169.81 square miles, has seen fluctuations in its population and housing market dynamics. The homeownership rate in Lake Don Pedro has shown a general upward trend in recent years, increasing from 75% in 2018 to 86% in 2022. This rise in homeownership coincides with significant growth in average home prices. In 2018, the average home price was $293,533, which steadily increased to $416,825 by 2022, representing a substantial 42% increase over four years. This trend suggests a strong correlation between rising home values and increased homeownership in the area.
Federal interest rates have played a crucial role in shaping homeownership trends. In 2018, when interest rates were at 1.83%, homeownership was at 75%. As interest rates dropped to 0.38% in 2020 and remained low at 0.08% in 2021, homeownership rates increased to 83% and 85% respectively. This aligns with the well-established trend that lower interest rates generally encourage homeownership due to more affordable financing options.
Conversely, the percentage of renters in Lake Don Pedro has decreased from 25% in 2018 to 14% in 2022. Interestingly, despite this decrease in the renter population, average rent prices have shown volatility. In 2018, the average rent was $973, which increased to $1,167 in 2020, before slightly decreasing to $1,145 in 2022. This fluctuation in rent prices, despite a decreasing renter population, could be attributed to broader economic factors or changes in the quality of available rental properties.
Looking at the most recent data, the average home price in Lake Don Pedro was $404,255 in 2023 and $402,155 in 2024, showing a slight decrease from the 2022 peak. This 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 may be contributing to the slight cooling in home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Lake Don Pedro may experience moderate growth, potentially reaching around $450,000 by 2029. This projection is based on the historical growth pattern and current market conditions. For rent prices, we expect a gradual increase, potentially reaching an average of $1,300 to $1,400 per month by 2029, assuming consistent economic conditions and housing demand.
In summary, Lake Don Pedro has experienced a significant increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the renter population. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with lower interest rates correlating with higher homeownership. Recent data shows a slight cooling in the housing market, likely influenced by rising interest rates. Moving forward, moderate growth in both home prices and rents is anticipated, reflecting the area's evolving housing market dynamics.
