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Average Home Values and Ownership in Zip Code 95608: Carmichael's Housing Market Dynamics
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 95608, located in Carmichael, California, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a gradual decline in owner-occupied housing, coupled with significant increases in average home prices and average rent costs.
The homeownership rate in zip code 95608 has shown a slight downward trend from 2013 to 2022. In 2013, 56% of housing units were owner-occupied, while by 2022, this figure had decreased to 54%. During this same period, average home prices in the area saw substantial growth. In 2013, the average home price was $280,912, and by 2022, it had risen to $576,043, representing a 105% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in zip code 95608. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 55-56%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate declined slightly to 53%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in zip code 95608 has increased from 44% in 2013 to 46% in 2022, mirroring the decline in homeownership. Concurrently, average rent prices have risen from $1,150 in 2013 to $1,317 in 2022, an increase of 14.5%. The population of the area has also grown during this period, from 59,911 in 2013 to 62,945 in 2022, potentially contributing to increased demand for rental properties and subsequent rent increases.
In 2023 and 2024, the housing market in zip code 95608 showed some interesting developments. The average home price in 2023 was $553,339, representing a slight decrease from the 2022 average of $576,043. However, in 2024, the average home price rebounded to $570,536. This fluctuation occurred against a backdrop of rising interest rates, which reached 5.02% in 2023 and further increased to 5.33% in 2024.
Looking ahead, based on historical trends and current market conditions, we can anticipate continued growth in both average home prices and average rent costs in zip code 95608 over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $660,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially reaching $1,525 per month by 2029. However, these projections may be influenced by various factors such as economic conditions, local development, and broader housing market trends.
In summary, zip code 95608 has experienced a gradual shift towards more renter-occupied housing, alongside substantial increases in both average home prices and average rent costs. The interplay between federal interest rates, population growth, and housing affordability has shaped these trends. As the area continues to evolve, it will be crucial to monitor how these factors influence the local housing market and community dynamics in the coming years.
