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Average Home Values Soar in Zip Code 92602: Irvine's Real Estate Market Trends
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 92602, located in Irvine, California, has experienced significant changes in its real estate market over the past decade. This area has seen fluctuations in homeownership rates, alongside consistent increases in both average home prices and average rent prices.
The homeownership rate in zip code 92602 has remained relatively stable, with some minor fluctuations. In 2013, the homeownership rate was 44%, and it reached its peak at 48% in 2017. However, by 2022, it had returned to 44%. During this same period, average home prices in the area saw a substantial increase. In 2013, the average home price was $810,928, and it rose steadily to reach $1,621,598 in 2022, representing a 100% increase over nine years.
Federal interest rates have played a role in homeownership trends in the area. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained steady at 44-45%. As interest rates began to rise in 2017 (1.00%), homeownership peaked at 48%. However, despite continued low interest rates through 2021 (0.08%), homeownership rates declined slightly, suggesting other factors were influencing the market.
The percentage of renters in zip code 92602 has shown more variability than homeownership rates. In 2013, the renter-occupied rate was 43%, and it remained stable until 2017 when it dropped to 40%. However, by 2022, the renter-occupied rate had increased significantly to 56%. Concurrently, average rent prices have risen consistently. In 2013, the average rent was $1,916, and by 2022, it had increased to $2,811, representing a 47% increase over nine years. This trend suggests that despite rising rent prices, more residents are choosing to rent, possibly due to the even steeper increase in home prices.
In 2023 and 2024, the real estate market in zip code 92602 continued its upward trajectory. The average home price in 2023 was $1,719,502, and in 2024 it reached $1,939,901, marking a 12.8% increase in just one year. This significant jump occurred despite rising interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, the highest levels since 2007.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in zip code 92602 will continue to rise over the next five years, potentially reaching or exceeding $2.5 million by 2029. Average rent prices are also expected to increase, possibly surpassing $3,500 per month within the same timeframe. These projections assume continued economic growth and sustained demand for housing in the Irvine area.
In summary, zip code 92602 has experienced significant growth in both average home prices and average rent prices over the past decade. While homeownership rates have remained relatively stable, there has been a recent shift towards renting. The area's real estate market has shown resilience, with prices continuing to rise even in the face of increasing interest rates. These trends suggest a robust and dynamic housing market in this part of Irvine, California.
