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Average Home Values and Ownership in Zip Code 95701: Alta's Homeownership Surge
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 95701, located in Alta, California, is a small rural community nestled in the Sierra Nevada mountains. This area has experienced significant shifts in homeownership rates and property values over the past decade. From 2013 to 2022, the percentage of owner-occupied homes increased substantially, while average home prices and average rent prices showed notable fluctuations.
The ownership percentage in zip code 95701 demonstrated a strong upward trend, rising from 76% in 2013 to an impressive 90% in 2022. This significant increase in homeownership coincided with a general upward trajectory in average home prices. In 2013, the average home price was $219,751, and by 2022, it had climbed to $482,402, representing a substantial 119% increase over this period. The most dramatic year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $389,767 to $449,276, a 15.3% rise in a single year.
Federal interest rates appear to have influenced homeownership rates in this zip code. As interest rates remained historically low from 2013 to 2021, ranging from 0.08% to 2.16%, homeownership rates steadily increased. The low-interest environment likely made mortgages more affordable, encouraging more residents to purchase homes. Even as interest rates began to rise in 2022 to 1.68%, the homeownership rate continued to climb, reaching its peak of 90%.
Conversely, the percentage of renters in zip code 95701 decreased significantly from 24% in 2013 to just 9% in 2022. This decline in the renter population coincided with fluctuations in average rent prices. In 2013, the average rent was $1,462, which peaked at $1,631 in 2015 before declining to $1,384 in 2022. The population of the zip code grew from 317 in 2013 to 402 in 2022, which may have influenced the housing market dynamics, potentially putting pressure on both home prices and rental rates.
In 2023 and 2024, average home prices in zip code 95701 experienced a slight decline followed by a marginal increase. The average home price dropped to $460,420 in 2023, a 4.6% decrease from 2022. However, in 2024, prices rebounded slightly to $462,187, a 0.4% increase from the previous year. This trend occurred against the backdrop of significantly higher interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting buyer affordability and market dynamics.
Looking ahead, predictive models suggest that average home prices in zip code 95701 may continue to experience moderate growth over the next five years, albeit at a slower pace than seen in the previous decade. Average rent prices are expected to stabilize and potentially increase slightly, reflecting the area's limited rental market and growing population. These projections are based on historical trends and current market conditions.
In summary, zip code 95701 has seen a remarkable increase in homeownership rates from 2013 to 2022, accompanied by substantial growth in average home prices. The rental market has simultaneously contracted, with fewer renters and fluctuating rent prices. Recent data from 2023 and 2024 indicate a slight cooling in the housing market, possibly influenced by rising interest rates. As the community continues to evolve, these trends will likely shape the future of Alta's housing landscape.
