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Average Home Values and Ownership in Zip Code 95377: A Decade of Growth and Resilience in Tracy, 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 95377, located in Tracy, California, has experienced significant demographic and real estate changes over the past decade. This area has seen fluctuations in homeownership rates and substantial increases in both average home prices and average rent prices, reflecting the dynamic nature of the local housing market.
The homeownership rate in zip code 95377 has shown a slight overall decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 75%, which dropped to a low of 70% in 2016 before recovering to 75% in 2022. This trend correlates interestingly with the average home prices in the area. In 2013, the average home price was $347,917, which steadily increased to $859,990 by 2022, representing a remarkable 147% increase over this period. Despite the substantial rise in home prices, the homeownership rate managed to recover to its 2013 levels by 2022, suggesting a resilient local housing market.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 95377. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the area saw a decrease in homeownership from 75% to 70%. This counterintuitive trend might be attributed to rapidly rising home prices outpacing the benefits of low interest rates. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized and slightly increased, possibly due to buyers rushing to purchase before rates climbed further.
The renter population in zip code 95377 has shown an inverse relationship to homeownership rates, naturally. The percentage of renters increased from 25% in 2013 to a peak of 30% in 2016, before declining back to 25% in 2022. Average rent prices have steadily increased during this period, rising from $2,015 in 2013 to $2,328 in 2022, an increase of about 15.5%. This increase in rent prices, while significant, was not as dramatic as the rise in home prices, potentially contributing to the area's ability to maintain a stable renter population despite the overall population growth from 31,758 in 2013 to 35,158 in 2022.
In 2023 and 2024, the housing market in zip code 95377 showed signs of cooling off. The average home price decreased to $798,075 in 2023, a 7.2% drop from 2022, before slightly recovering to $825,197 in 2024. This cooling trend coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially dampening buyer demand and contributing to the moderation in home prices.
Looking ahead, predictive models suggest that average home prices in zip code 95377 may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid increases seen in the early 2020s. Average rent prices are also expected to continue their upward trend, potentially reaching around $2,600 by 2029. These projections are based on historical trends and current market conditions, including the impact of higher interest rates on housing affordability.
In summary, zip code 95377 has demonstrated a resilient housing market with homeownership rates recovering to 75% by 2022 despite significant increases in average home prices. The area has maintained a balance between owners and renters, with rent prices increasing more moderately than home prices. Recent cooling in the housing market, influenced by rising interest rates, suggests a potential stabilization phase, with moderate growth expected in both home prices and rents over the next five years.
