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Average Home Values and Ownership in Zip Code 95662: Orangevale's Rural Charm and 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
Orangevale, situated in zip code 95662 in California, is a suburban community renowned for its rural charm and proximity to Sacramento. Over the past decade, this area has experienced significant changes in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Orangevale has shown a gradual increase from 72% in 2015 to 76% in 2022, indicating a growing preference for ownership in the area. This trend aligns with the substantial rise in average home prices, which have more than doubled from $236,109 in 2010 to $573,385 in 2022. The most significant jump occurred between 2020 and 2021, with average home prices surging from $441,645 to $516,279, a 16.9% increase in just one year.
The relationship between federal interest rates and homeownership rates in Orangevale demonstrates the typical inverse correlation. As interest rates remained historically low from 2010 to 2021, ranging from 0.08% to 2.16%, homeownership rates steadily increased. This period of low interest rates likely contributed to the rising homeownership, as it made mortgage financing more accessible and affordable for potential buyers.
Renter percentages in Orangevale have slightly decreased from 28% in 2015 to 24% in 2022, inversely mirroring the increase in homeownership. Average rent prices have shown moderate fluctuations, rising from $1,429 in 2013 to $1,722 in 2021, before settling at $1,527 in 2022. The population growth from 31,103 in 2010 to 32,309 in 2022 may have contributed to the overall upward pressure on both home prices and rents, albeit with some year-to-year variations.
In 2023, average home prices in Orangevale experienced a slight decline to $543,866, a 5.1% decrease from the previous year. This trend continued into 2024, with prices rebounding slightly to $555,056. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the near-zero rates of the early 2020s.
Looking ahead, predictive models suggest that average home prices in Orangevale may continue to experience moderate growth over the next five years, potentially reaching around $600,000 by 2029. Average rent prices are projected to follow a similar trajectory, potentially increasing to approximately $1,800 per month within the same timeframe, assuming consistent economic conditions and housing demand in the area.
In summary, Orangevale has seen a clear trend towards increased homeownership and rising property values over the past decade. The interplay between low interest rates and rising home prices has been a significant factor in shaping the local real estate market. While recent increases in interest rates may slow the pace of price growth, the area's desirability and limited housing supply are likely to maintain upward pressure on both home values and rental rates in the coming years.
