Kenwood, situated in zip code 95452 in California, has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices in the area. The homeownership rate in Kenwood has shown a notable decline in recent years. In 2013, 80% of residents were homeowners, but by 2022, this figure had dropped to 72%. During this same period, average home prices in the area saw a substantial increase. In 2013, the average home price was $736,280, and by 2022, it had risen to $1,392,741, representing an 89% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.

Federal interest rates have played a role in shaping homeownership trends in Kenwood. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 80%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.

The renter population in Kenwood has increased as homeownership has declined. In 2013, 20% of residents were renters, and by 2022, this figure had risen to 27%. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $2,196, and it fluctuated over the years, reaching $2,308 in 2022. The lack of a strong correlation between renter percentages and average rent prices might be attributed to factors such as changes in housing supply or local economic conditions.