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Average Home Values and Ownership in Zip Code 95519: McKinleyville's Decade of Housing Trends
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
McKinleyville, located in zip code 95519 in California, has experienced fluctuating trends in homeownership and housing prices over the past decade. This analysis explores the relationship between ownership rates, average home prices, and average rent prices in this area.
The homeownership rate in McKinleyville has shown a general upward trend from 2013 to 2022. In 2013, the ownership rate was 62%, which increased to 66% by 2021 before slightly decreasing to 62% in 2022. During this period, average home prices in the area have also seen significant growth. In 2013, the average home price was $306,238, which steadily increased to $524,198 by 2022, representing a substantial 71.2% increase over nine years.
The relationship between federal interest rates and homeownership rates in McKinleyville shows some correlation. From 2013 to 2020, when interest rates were generally low (ranging from 0.09% to 2.16%), homeownership rates increased from 62% to 66%. This aligns with the well-established trend that lower interest rates tend to encourage homeownership due to more affordable financing options. However, despite rising interest rates in 2021 and 2022 (0.08% and 1.68% respectively), homeownership rates remained relatively stable at 66% in 2021 before dropping slightly to 62% in 2022.
Regarding rental trends, the percentage of renters in McKinleyville has fluctuated between 34% and 40% from 2013 to 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $1,164, which peaked at $1,219 in 2017 before declining to $1,003 in 2022. This represents a 13.8% decrease in average rent prices from 2013 to 2022. Interestingly, this downward trend in rent prices occurred despite the area's population growth from 18,668 in 2013 to 18,156 in 2022, suggesting that other factors beyond population changes may be influencing rental markets in the area.
In 2023 and 2024, McKinleyville experienced a shift in housing market dynamics. The average home price decreased from $524,198 in 2022 to $507,433 in 2023, and further to $496,820 in 2024, marking a 5.2% decline over two years. This downturn coincided with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market in the area.
Looking ahead, predictive models suggest that average home prices in McKinleyville may continue to face downward pressure in the short term due to high interest rates. However, given the area's historical resilience and long-term appreciation trends, a gradual recovery and stabilization of home prices can be expected over the next five years. Rent prices, which have shown more volatility, may see modest increases as the market adjusts to changing economic conditions and housing demand.
In summary, McKinleyville has demonstrated a complex interplay between homeownership rates, average home prices, and rental markets. While homeownership rates have generally increased over the past decade, recent years have seen some fluctuation. Average home prices showed strong growth until 2022 but have since experienced a decline coinciding with rising interest rates. The rental market has displayed its own unique trends, with average rent prices decreasing despite population growth. These dynamics highlight the multifaceted nature of the local housing market and its sensitivity to broader economic factors.
