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Average Home Values and Ownership in Zip Code 95348: A Decade of Change in Merced, California
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 95348, located in Merced, California, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 95348 has shown a general decline from 2013 to 2019, before experiencing some recovery in recent years. In 2013, the homeownership rate was 43%, which dropped to 38% by 2019. However, there was a notable increase to 45% in 2022. This trend coincides with changes in average home prices, which have risen substantially over the same period. The average home price in 2013 was $165,726, and by 2022, it had increased to $412,732, representing a 149% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, the period of historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%) coincided with relatively stable homeownership rates around 42-44%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, homeownership rates decreased to 38%. The recent uptick in homeownership to 45% in 2022 occurred despite rising interest rates, suggesting other local factors may be influencing this trend.
Renter percentages in zip code 95348 have generally moved inversely to homeownership rates, increasing from 57% in 2013 to a peak of 62% in 2019, before decreasing to 55% in 2022. Average rent prices have shown a steady upward trend, rising from $1,231 in 2013 to $1,382 in 2022, an increase of 12.3% over nine years. This increase in rent prices, coupled with population growth from 31,328 in 2013 to 35,578 in 2022, suggests a growing demand for rental properties in the area.
In 2023 and 2024, the housing market in zip code 95348 experienced some changes. The average home price in 2023 was $400,003, showing a slight decrease from 2022. However, in 2024, the average home price increased to $411,969, nearly recovering to the 2022 level. These fluctuations occurred against a backdrop of significantly higher interest rates, which stood at 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 95348 may continue to show moderate growth, potentially reaching around $450,000 to $500,000 by 2029. Average rent prices could also continue their upward trajectory, potentially increasing to $1,500-$1,600 per month in the same timeframe.
In summary, zip code 95348 has experienced a complex interplay of homeownership rates, average home prices, and rental market dynamics. The area has seen substantial growth in property values, with some volatility in homeownership rates. The rental market has remained strong, with steadily increasing average rents. Recent data from 2023 and 2024 suggest a stabilizing housing market, despite high interest rates. These trends indicate a resilient and evolving housing market in this Merced zip code.
