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Average Home Values and Ownership in Zip Code 95991: Resilience Amidst Rising Prices
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 95991, located in Yuba City, California, has experienced significant shifts in its housing market over the past decade. This area, known for its agricultural roots and proximity to the Feather River, has seen notable changes in homeownership rates and property values, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 95991 has remained relatively stable, with slight fluctuations over the years. In 2013, the ownership rate stood at 48%, and by 2022, it had increased marginally to 49%. During this period, average home prices in the area saw substantial growth. In 2013, the average home price was $151,176, which steadily increased to $405,883 by 2022, representing a remarkable 168% increase over nine years. This significant rise in property values, despite relatively stable homeownership rates, suggests a robust demand for housing in the area, potentially driven by factors such as local economic growth or increased desirability of the location.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 95991. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates remained relatively stable, hovering around 46-48%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight decrease in homeownership, dropping to 46% in 2018. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with an increase in homeownership to 49% by 2022, demonstrating the typical inverse relationship between interest rates and homeownership rates.
Rental trends in zip code 95991 have shown interesting patterns. The percentage of renters increased from 52% in 2013 to 54% in 2018, before slightly decreasing to 51% by 2022. Average rent prices have generally trended upward, rising from $1,119 in 2013 to $1,173 in 2022, an increase of about 4.8%. However, this increase was not linear, with fluctuations observed throughout the years. For instance, average rent peaked at $1,253 in 2021 before decreasing in 2022. These trends suggest a dynamic rental market, potentially influenced by factors such as changing housing preferences, local economic conditions, and the area's growing population, which increased from 41,015 in 2013 to 43,743 in 2022.
In 2023 and 2024, the housing market in zip code 95991 showed signs of stabilization after years of growth. The average home price in 2023 was $394,764, a slight decrease from the 2022 peak. However, in 2024, prices rebounded slightly to $401,555. This period coincided with significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting home buying decisions and overall market dynamics.
Looking ahead, predictive models suggest a continued but moderate increase in both average home prices and rent prices over the next five years. Home prices are projected to grow at an average annual rate of 2-3%, potentially reaching around $450,000 by 2029. Rent prices are expected to follow a similar trend, with an estimated annual increase of 1.5-2.5%, potentially reaching an average of $1,300 per month by 2029. These projections assume relatively stable economic conditions and gradual population growth in the area.
In summary, zip code 95991 has demonstrated resilience and growth in its housing market. The area has seen substantial appreciation in home values, relatively stable homeownership rates, and moderate increases in rent prices. The interplay between federal interest rates, local economic factors, and population growth has shaped these trends, creating a dynamic and evolving housing landscape in this part of Yuba City, California.
