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Average Home Values and Ownership in Zip Code 95963: A Decade of Resilience
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 95963, located in Orland, California, presents an interesting case study of housing dynamics in a small urban area. Over the past decade, this region has experienced fluctuations in homeownership rates and significant changes in both average home prices and average rent prices. The overall trend shows a slight decline in homeownership, coupled with substantial increases in average home values and moderate growth in average rent prices.
The homeownership rate in zip code 95963 has seen some variations between 2013 and 2022. In 2013, the area had a 70% homeownership rate, which declined to 63% by 2017 and remained stable until 2019. There was a slight increase to 67% in 2021, before settling at 66% in 2022. Concurrently, average home prices have shown a consistent upward trend. In 2013, the average home price was $171,681, which more than doubled to $394,314 by 2022, representing a 129.7% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 95963. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates declined from 70% to 63%, possibly due to other economic factors outweighing the benefits of low borrowing costs. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates stabilized and even showed a slight recovery, reaching 66% by 2022. This counterintuitive trend might be attributed to other local economic factors or housing market dynamics specific to Orland.
The renter population in zip code 95963 has fluctuated inversely to homeownership rates, increasing from 30% in 2013 to 37% in 2017, before decreasing to 34% in 2022. Average rent prices have shown overall growth, albeit with some fluctuations. In 2013, the average rent was $971, which increased to $995 by 2017. After a slight dip to $917 in 2020, possibly due to the economic impact of the COVID-19 pandemic, average rent prices rose sharply to $1,028 in 2021 before settling at $936 in 2022. The population growth from 16,098 in 2013 to 17,417 in 2022 may have contributed to the overall upward pressure on rent prices.
In 2023 and 2024, the housing market in zip code 95963 showed interesting developments. The average home price slightly decreased from $394,314 in 2022 to $380,293 in 2023, marking a 3.6% decline. However, there was a modest recovery in 2024, with the average home price increasing to $384,039, a 1% rise from the previous year. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and further increasing to 5.33% in 2024. These higher interest rates may have contributed to the initial cooling of home prices in 2023, followed by a slight rebound as the market adjusted to the new rate environment.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 95963 are likely to continue their long-term upward trajectory, albeit at a more moderate pace. We might expect average home prices to reach approximately $425,000 to $450,000 by 2029. Average rent prices are also anticipated to increase, potentially reaching $1,100 to $1,200 per month by 2029, driven by population growth and inflationary pressures.
In summary, zip code 95963 has experienced a complex interplay of housing market dynamics over the past decade. While homeownership rates have slightly declined, both average home prices and rent prices have seen substantial increases. The recent rise in interest rates and the slight cooling of home prices in 2023 suggest a potential shift in market dynamics. Moving forward, the area is likely to see continued, though potentially more moderate, growth in both home values and rent prices, reflecting ongoing demand in this California community.
