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Average Home Values and Ownership in Zip Code 95914: A Rural California Community's Housing Evolution
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
Rackerby, located in zip code 95914 in California, is a small rural community that has experienced notable shifts in homeownership and housing market dynamics over the past decade. This area has seen a general trend of increasing homeownership rates alongside fluctuating average home prices and rent costs.
The ownership percentage in Rackerby has shown a significant upward trend from 2013 to 2022. In 2013, the homeownership rate was 73%, which steadily increased to 86% by 2022. This rise in homeownership coincided with changing average home prices. In 2013, the average home price was $225,744, which rose to $466,138 by 2022, representing a substantial increase of 106.5% over this period. The most dramatic year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $361,007 to $426,217, a 18% increase in just one year.
Federal interest rates appear to have influenced homeownership rates in Rackerby. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership increased from 73% to 86%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, even as interest rates began to rise more sharply from 2017 onwards, homeownership rates in Rackerby remained high, suggesting other local factors may have played a role in maintaining high ownership levels.
Conversely, the percentage of renters in Rackerby decreased from 27% in 2013 to 13% in 2022. This decline in renters corresponded with fluctuating average rent prices. In 2013, the average rent was $1,292, which decreased to $995 by 2022, a 23% reduction. The lowest average rent during this period was $963 in 2016, coinciding with the highest homeownership rate of 86%. It's worth noting that despite the overall population decrease from 260 in 2013 to 262 in 2022, the community maintained a high rate of homeownership.
In 2023, the average home price in Rackerby decreased to $416,490, a 10.7% drop from the previous year. This decline continued into 2024, with average home prices further reducing to $397,545. Interestingly, this downward trend in home prices occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests that local market factors may be exerting a stronger influence on home prices than national interest rate trends in this particular area.
Looking ahead, based on the historical data and recent trends, we can project potential scenarios for the next five years. If the current trend continues, we might expect average home prices in Rackerby to stabilize or potentially decrease slightly, given the recent downward trajectory. However, if economic conditions improve and interest rates stabilize, we could see a gradual increase in home prices, potentially reaching the $450,000 to $500,000 range by 2029. Average rent prices, which have been relatively stable in recent years, may see modest increases, potentially reaching around $1,100 to $1,200 per month by 2029, assuming continued high homeownership rates and limited rental inventory.
In summary, Rackerby has experienced a significant increase in homeownership rates over the past decade, coupled with substantial growth in average home prices until recent years. The community has maintained high ownership levels despite fluctuations in federal interest rates and a slight population decline. The rental market has shrunk in terms of both percentage of renters and average rent prices. Recent data shows a cooling in the housing market, with decreasing home prices in 2023 and 2024, presenting an evolving landscape for both homeowners and potential buyers in this rural California community.
