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Average Home Values and Ownership in Zip Code 95817: A Resilient Sacramento Real Estate Market
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 95817, located in Sacramento, California, has experienced significant changes in homeownership rates and housing prices over the past decade. This area, known for its proximity to the University of California, Davis Medical Center, has seen a dynamic shift in its real estate landscape. The homeownership rate in zip code 95817 has fluctuated between 34% and 39% from 2013 to 2022. In 2013, the ownership rate stood at 36%, and by 2022, it had increased slightly to 38%. During this period, average home prices in the area saw a substantial rise. In 2013, the average home price was $163,638, which more than tripled to $510,474 by 2022, representing a 212% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. In 2013, when the federal interest rate was at a low 0.11%, the homeownership rate was 36%. As interest rates gradually increased to 1.83% in 2018, the homeownership rate also rose to 39%. However, this trend didn't continue uniformly. In 2021, despite historically low interest rates of 0.08%, the homeownership rate dropped to 34%, its lowest point in the observed period.
Renter percentages in zip code 95817 have remained consistently high, ranging from 61% to 66% between 2013 and 2022. The average rent prices have shown a general upward trend, albeit with some fluctuations. In 2013, the average rent was $1,147, which increased to $1,239 by 2022, representing an 8% rise. Notably, there was a significant jump in average rent to $1,333 in 2021, coinciding with the lowest homeownership rate of 34% that year. The high renter percentage could be attributed to the area's proximity to medical and educational institutions, attracting a transient population of students and medical professionals.
Looking at the most recent data, the average home price in zip code 95817 decreased to $483,769 in 2023, a 5.2% drop from 2022. However, in 2024, there's a slight recovery with the average home price rising to $491,139. This occurs against the backdrop of significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the moderation in home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 95817 will continue to show moderate growth, potentially reaching around $550,000 by 2029. This projection takes into account the recent slowdown and the impact of higher interest rates. For average rent prices, we expect a continued upward trend, potentially reaching $1,400-$1,500 per month by 2029, driven by the area's consistent demand for rental properties.
In summary, zip code 95817 has demonstrated a robust increase in average home values over the past decade, despite relatively stable homeownership rates. The area maintains a high proportion of renters, likely due to its urban location and proximity to key institutions. Recent data shows a slight cooling in the housing market, potentially influenced by rising interest rates. Moving forward, we expect moderate growth in both home prices and rents, reflecting the area's continued appeal and the broader economic conditions.
