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Average Home Values and Ownership in Zip Code 95357: A Decade of Growth in Modesto, 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 95357, located in Modesto, 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 95357 has remained relatively stable, with slight fluctuations between 67% and 71% from 2013 to 2022. However, there's been a notable correlation between homeownership rates and average home prices. In 2013, when the homeownership rate was 70%, the average home price was $195,424. As average home prices steadily increased, reaching $500,984 in 2022, the homeownership rate slightly decreased to 69%. This suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.09% to 0.40%), homeownership rates remained relatively high at 70-71%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decline in homeownership to 69%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in zip code 95357 have shown a slight increase over time, moving from 30% in 2013 to 31% in 2022. This trend corresponds with the rise in average rent prices, which increased from $1,378 in 2013 to $1,492 in 2022. The population growth in the area, from 14,991 in 2013 to 19,359 in 2022, may have contributed to the increased demand for rental properties, thereby pushing up average rent prices.
In 2023 and 2024, the housing market in zip code 95357 showed some interesting developments. The average home price decreased slightly from $500,984 in 2022 to $484,673 in 2023, before rebounding to $500,210 in 2024. This slight dip and recovery occurred despite the significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024.
Looking ahead, predictive models suggest that average home prices in zip code 95357 may continue to rise moderately over the next five years, potentially reaching around $550,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,700 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 95357 has demonstrated resilience in its housing market, maintaining relatively stable homeownership rates despite rising home prices and fluctuating interest rates. The area has seen consistent population growth, which has likely contributed to increasing home values and rent prices. The slight shift towards renting and the recent rebound in home prices despite high interest rates suggest a robust local housing market that adapts to changing economic conditions.
