Bloomington, California: A Study in Rising Home Prices and Declining Ownership Bloomington, located in California, is a vibrant community with a population of 29,355 as of 2022. This city has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. The homeownership rate in Bloomington has shown a declining trend, dropping from 76% in 2013 to 67% in 2022. During this same period, average home prices have experienced substantial growth. In 2013, the average home price was $172,068, which increased dramatically to $512,848 by 2022, representing a 198% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.

Federal interest rates have played a role in shaping homeownership trends in Bloomington. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 74%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined to 67%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.

The percentage of renters in Bloomington has increased from 24% in 2013 to 33% in 2022. Interestingly, average rent prices have fluctuated during this period. In 2013, the average rent was $1,301, which decreased to $1,173 in 2018 before rising again to $1,321 in 2022. The overall increase in the renter population, despite relatively stable rent prices, may indicate a shift in housing preferences or challenges in transitioning to homeownership due to rising property values.