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Average Home Values and Ownership in Zip Code 96019: Resilience Amid 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 96019, located in Shasta Lake, California, has experienced notable shifts in homeownership, average home prices, and average rent prices over the past decade. This area has seen a general trend towards increased homeownership and rising property values, with some fluctuations in recent years.
The homeownership rate in zip code 96019 has shown an overall upward trend from 2013 to 2022. In 2013, the ownership rate was 63%, which increased to 66% by 2021. However, there was a slight decrease to 62% in 2022. This trend generally aligns with the movement in average home prices. The average home price in 2016 was $168,661, which steadily increased to $299,257 by 2022, representing a significant 77.4% increase over six years. This substantial rise in home values may have contributed to the overall increase in homeownership, as residents likely saw the potential for wealth accumulation through property ownership.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates coincided with the increase in homeownership rates, as more affordable financing options were available to potential buyers. The slight dip in ownership in 2022 to 62% may be partially attributed to the rise in interest rates to 1.68% in that year, making mortgages less affordable for some potential buyers.
Renter percentages in zip code 96019 have fluctuated inversely to homeownership rates, naturally. The renter population peaked at 42% in 2016 and has since decreased to 38% in 2022. Average rent prices have shown a general upward trend, increasing from $1,062 in 2013 to $1,222 in 2022, a 15% increase over nine years. This rise in rent prices, coupled with the growing population from 9,826 in 2013 to 10,391 in 2022, suggests a consistent demand for rental properties in the area.
In 2023 and 2024, average home prices in zip code 96019 experienced a slight correction after years of growth. The average home price in 2023 was $291,988, a 2.4% decrease from 2022. However, in 2024, prices rebounded slightly to $296,242. This minor fluctuation occurs against the backdrop of significantly higher interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher rates may have contributed to the temporary slowdown in home price appreciation.
Looking ahead, predictive models suggest that average home prices in zip code 96019 may continue to rise moderately over the next five years, potentially reaching around $325,000 by 2029. This projection assumes a stabilization of interest rates and continued demand in the area. Average rent prices are also expected to increase, possibly reaching approximately $1,400 by 2029, driven by inflation and the area's growing population.
In summary, zip code 96019 has demonstrated resilience in its housing market, with a general trend towards increased homeownership and rising property values. The interplay between interest rates, home prices, and rent costs has shaped the local real estate landscape. While recent years have shown some fluctuations, the overall trajectory suggests a stable and gradually appreciating housing market in this Shasta Lake neighborhood.
