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Average Home Values and Ownership in Zip Code 95632: A Decade of Growth in Galt, 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 95632, encompassing Galt, California, covers an area of 110.95 square miles. This suburban community has experienced significant changes in homeownership rates and property values over the past decade, reflecting broader economic trends and local market dynamics.
The ownership percentage in Galt has shown a steady increase from 71% in 2013 to 77% in 2022, indicating a growing preference for homeownership. This trend has coincided with a substantial rise in average home prices, which have more than doubled from $217,306 in 2013 to $557,371 in 2022. The relationship between these two factors suggests that despite rising property values, residents have been increasingly motivated to purchase homes rather than rent.
Federal interest rates have played a crucial role in shaping homeownership trends in Galt. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the sustained homeownership rate of 71-72% during this time. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), we observed a continued increase in homeownership, reaching 73% by 2019. This suggests that other factors, such as local economic conditions or housing market sentiment, may have outweighed the impact of rising interest rates on homebuying decisions.
Conversely, the percentage of renters in Galt has decreased from 29% in 2013 to 23% in 2022. Despite this decline, average rent prices have shown an overall upward trend, increasing from $1,260 in 2013 to $1,292 in 2022, with some fluctuations in between. The peak average rent of $1,495 was observed in 2021, possibly influenced by the broader housing market dynamics and temporary economic factors related to the global pandemic.
In 2023, the average home price in Galt experienced a slight decrease to $524,242, representing a 5.9% decline from the previous year. This adjustment coincided with a significant increase in federal interest rates to 5.02%. Moving into 2024, we see a minor recovery in average home prices, rising to $532,611, while interest rates have further increased to 5.33%. These figures suggest a period of market stabilization following the rapid growth observed in previous years.
Looking ahead, predictive models forecast a continued but more moderate growth in both average home and rent prices over the next five years. Average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $620,000 by 2029. Average rent prices are expected to follow a similar trajectory, with estimated annual increases of 2-3%, potentially surpassing $1,500 by 2029.
In summary, Galt has witnessed a significant shift towards homeownership, with the percentage of owner-occupied homes rising from 71% to 77% between 2013 and 2022. This trend has occurred alongside a substantial increase in average home prices, more than doubling during the same period. Despite fluctuations in federal interest rates, the local housing market has demonstrated resilience, with recent data suggesting a period of stabilization and moderate growth ahead. The rental market, while shrinking in terms of occupancy percentage, has seen generally increasing average rents, reflecting the overall appreciation of the local real estate market.
