Loading Content...
Average Home Values and Ownership Surge in Sacramento's Zip Code 95832 Amid Interest Rate Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 95832, located in Sacramento, California, spans an area of 8.29 square miles and has undergone significant changes in homeownership rates, average home prices, and average rent prices over the past decade. The overall trend indicates an increase in homeownership, rising average home prices, and fluctuating average rent prices.
The homeownership rate in zip code 95832 has shown a remarkable upward trend, particularly in recent years. In 2013, the homeownership rate was 54%, which remained relatively stable until 2018 when it dipped slightly to 49%. However, from 2019 onwards, there was a significant increase in homeownership. By 2022, the homeownership rate had risen to 71%, representing a 22 percentage point increase from 2018. This surge in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $147,135, which steadily increased to $299,314 by 2019. The most dramatic increase occurred between 2020 and 2022, with average home prices jumping from $322,195 to $429,521, a 33.3% increase in just two years.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. From 2013 to 2015, when interest rates were extremely low (around 0.1%), homeownership rates remained stable at around 54%. As interest rates began to rise from 2016 to 2019 (reaching 2.16% in 2019), homeownership rates initially dipped but then started to increase. Interestingly, the most significant surge in homeownership occurred during 2020-2022, when interest rates dropped again due to the pandemic and its economic effects. This period saw homeownership rates climb from 59% in 2020 to 71% in 2022, despite average home prices also rising rapidly during this time.
The renter percentage in zip code 95832 has inversely mirrored the homeownership trend. In 2013, renters made up 45% of the population, which increased slightly to 51% by 2018. However, from 2019 onwards, the renter percentage began to decline sharply, reaching 29% by 2022. This decline in renter occupancy coincided with an overall increase in average rent prices. In 2013, the average rent was $1,370, which rose to $1,535 by 2018. The most significant increase in average rent occurred between 2020 and 2021, jumping from $1,683 to $1,781. Interestingly, despite the decreasing renter population, average rent prices continued to rise, possibly due to increased demand for the limited rental properties available or improvements in the quality of rental stock.
Looking at the most recent data, the average home price in zip code 95832 decreased from $429,521 in 2022 to $402,370 in 2023, representing a 6.3% decline. However, in 2024, the average home price has rebounded slightly to $411,908, a 2.4% increase from 2023. This recent trend coincides with higher interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting home buying decisions and prices.
Based on the historical trends and recent data, we can project the following 5-year trends for average home and rent prices in zip code 95832: Average home prices are likely to continue their overall upward trajectory, albeit at a more moderate pace. We can expect prices to reach approximately $450,000-$475,000 by 2029. Average rent prices are predicted to maintain their upward trend, possibly reaching $1,900-$2,000 per month by 2029, assuming the current economic conditions and housing demand persist.
In summary, zip code 95832 has experienced a significant shift towards homeownership in recent years, accompanied by substantial increases in both average home prices and average rent prices. The interplay between federal interest rates, homeownership rates, and housing prices demonstrates the complex dynamics of the local real estate market. As the area continues to evolve, it will be crucial to monitor these trends and their impact on the local community.
