Renter percentages in zip code 95814 have remained consistently high, albeit with a slight decrease from 91% in 2018 to 89% in 2022. Average rent prices have shown an overall upward trend, increasing from $807 in 2013 to $875 in 2022, a 8.4% rise. However, it's worth noting that rent prices have not increased as dramatically as home prices. The high renter percentage could be attributed to the urban nature of the area and the growing population, which increased from 10,086 in 2013 to 11,827 in 2022.

Looking at the most recent data, the average home price in zip code 95814 decreased to $620,128 in 2023 and further to $598,008 in 2024. This represents a significant drop from the peak of $673,509 in 2022. Concurrently, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, which may be contributing to the cooling of the housing market in this area.

Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 95814 may continue to experience some downward pressure in the short term due to high interest rates. However, given the area's desirability and historical growth, prices are likely to stabilize and potentially begin to rise again within the next 2-3 years. Average rent prices are expected to continue their gradual upward trend, potentially reaching around $950-$1,000 per month by 2029, driven by the area's consistent demand for rental properties.

In summary, zip code 95814 has demonstrated a complex interplay between homeownership rates, average home prices, and rental markets. The area has seen a significant increase in property values over the past decade, accompanied by a gradual rise in homeownership. However, the recent spike in interest rates and subsequent cooling of home prices suggest a potential shift in the market dynamics. Despite these changes, the area's high renter percentage and steadily increasing rent prices indicate a sustained demand for housing in this urban Sacramento neighborhood.